Median after-tax household income grew by 9.8 per cent from 2015 to 2020, double the rate of growth seen by Canadian households from 2010 to 2015, when after-tax income grew by less than half of this rate (4.5 percent). Statistics Canada says the increase in median income is largely due to federal government transfers during the pandemic, especially for lower-income families. “After-tax income growth was faster for lower-income households, reflecting the larger contributions of the Canada Child Benefit and pandemic relief benefits to the incomes of lower-income families,” the release said. In single-parent families headed by a woman, which accounts for 80 per cent of single-family households, median after-tax income increased by 22.8 per cent from 2015 to 2020, largely due to the Canada Child Benefit and its improvements released during the pandemic. It was not the same for all provinces. While Ontario, Quebec and B.C. saw double-digit growth in after-tax revenue, Alberta and Newfoundland saw after-tax revenue decline by 4.6 and 1.3 per cent, respectively. While after-tax income increased significantly in 2020 compared to 2015, income inequality decreased across the country, with Alberta recording the largest decline, largely due to pandemic benefits. More to come.
