Income Decline Among Canada's Top Earners in 2022

Statistics Canada has released data on high-income Canadians for the year 2022. The report indicates that the average total income for the top 1% of tax filers was $586,900, marking a 5.1% decrease from the previous year. This decline is attributed to the reduction of COVID-19 pandemic-related government benefit programs and an inflation rate of 6.8%, the highest in 40 years.

The report further highlights that the top 0.1% and 0.01% of tax filers experienced even larger income declines, with decreases of 6.9% and 9.9%, respectively. Despite these reductions, a significant proportion of high-income earners remained within the top income brackets over the years.

The data is part of the Longitudinal Administrative Databank, which provides insights into income dynamics across Canada. It includes a variety of income sources such as earnings, investments, and government transfers, adjusted to 2022 constant dollars.

This information is crucial for understanding income distribution and economic trends in Canada, particularly in the context of post-pandemic recovery and inflationary pressures.