Tax burden per Ontarian increasing to $9,406 this year; higher than under previous government

TORONTO—The provincial tax burden per Ontarian (inflation-adjusted) is higher now than it ever was under the previous government, finds a new report published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Lowering taxes is one way Queen’s Park could boost economic growth, attract more investment and let Ontario workers keep more of their own money,” said Ben Eisen, Fraser Institute senior fellow and co-author Pro-Growth Options for Shrinking the Tax Burden in Ontario.

Despite several promises made by the current provincial government to lower taxes, the tax burden for Ontarians remains high.

In fact, tax revenue for the provincial government, compared to the size of the economy (GDP), has steadily increased in recent years. Provincial tax revenue was equivalent to 12.1 percent of GDP in Ontario in 2017/18. In 2023/24, that had risen to 13.0 percent and projected to increase to 13.4 percent in 2024/25.

Furthermore, the provincial tax burden per person (inflation-adjusted) increased from $6,358 in 2003/04 to $8,736 in 2017/18—the previous government’s final year. However, per-person tax revenue increased further to $9,307 in 2023/24, and is projected to increase again to $9,406 this year.

Given that provincial tax revenues have been increasing, the study notes that there is room for the government to pursue pro-growth tax reform. It shows that by eliminating Ontario’s two top provincial tax brackets provincial revenue would be reduced by at least $5 billion.

“Pursuing pro-growth tax reform would benefit the province in several ways, including greater economic growth, more business investment and a lower tax burden for Ontario workers.,” Eisen said.

Media Contact:
Ben Eisen, Senior Fellow, Fraser Institute

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Emily Rigden, Fraser Institute
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emily.rigden@fraserinstitute.org