Wealthiest Canadians see pay dip, but women gain ground and investment returns drive new growth
Canada’s top earners are seeing their inflation-adjusted incomes slip, even as investment income becomes a more significant driver of wealth at the highest levels, according to recent data.
From 2022 to 2023, the average income for the top 1 percent of Canadians declined by 0.6 percent to $606,000, while those in the top 0.1 percent experienced a 1.0 percent drop to $2,131,900.
The threshold to enter the top 1 percent stood at $293,800, and for the top 0.1 percent, $930,100, as reported by the latest figures.
Notably, the top 0.01 percent—those earning $3,487,600 or more—were the exception, with their average income edging up 0.2 percent to $7,743,100.
Investment income is playing a growing role among top earners.
In 2023, dividends, interest, and other income accounted for 43.8 percent of total income for the top 0.01 percent, 35.4 percent for the top 0.1 percent, and 26.4 percent for the top 1 percent.
This shift is partly attributed to the strength of financial markets, as per the report.
In contrast, wages and salaries made up just over half of total income for the top 0.01 percent, down from 67.3 percent in 2016.
The broader Canadian population also felt the squeeze, with average inflation-adjusted income for all tax filers dipping 0.3 percent to $59,900 in 2023, following a 3.2 percent decrease in 2022.
According to the data, ongoing economic adjustments in the post-pandemic period—including slower GDP growth, rapid population increases driven by non-permanent residents, and a 3.9 percent inflation rate—contributed to these declines.
Women are making notable gains in high-income brackets.
The share of women among the top 1 percent of tax filers rose to 26.4 percent in 2023, with their average income increasing by 0.4 percent to $547,500.
Meanwhile, men in the same group saw their average income decrease by 0.8 percent to $627,000.
In the top 0.1 percent, women’s representation climbed to 20.7 percent, though their average income fell by 1.6 percent to $1,955,100.
High-income persistence remains strong, with 70.9 percent of those in the top 1 percent in 2023 also holding that status in 2022.
Ontario posted the highest persistence rate at 72.5 percent, while the territories, despite a notable increase, remained more than 10 percentage points below the national average.
Despite recent declines, the report notes that inflation-adjusted average incomes for all groups remain above pre-pandemic levels.
