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Canadas 2023 Income Report Highlights Growth, But Poverty Still Uneven Across Regions and Groups
Canada’s latest income data paints a nuanced picture. While most Canadians saw a modest rise in their after-tax incomes in 2023, millions continue to live below the poverty line. The median after-tax income for Canadian families and individuals rose to $74,200, a 1.2% increase from the previous year, adjusted for inflation. But despite these gains, Canada’s poverty rate held steady at 10.2%, showing little improvement from pre-pandemic levels. This dual reality raises critical questions. Who’s benefitting from income growth—and who’s left behind?
Rising Incomes for Many, But Not for All
Canada’s economic recovery after the pandemic has slowly brought income growth back on track. Here’s what the numbers show:
| Income Category | 2022 | 2023 | % Change |
| Median after-tax income | $73,300 | $74,200 | +1.2% |
| Median market income | $67,700 | $68,700 | +1.5% |
| Median government transfers | $10,500 | $10,000 | –4.8% |
Government transfers declined for the third straight year, but they remain above pre-pandemic levels. In 2019, the average transfer was just $9,400, showing how federal support systems have evolved post-COVID.
Income Growth Among Seniors Stands Out
Seniors saw some of the biggest income increases in 2023. This group experienced notable gains in both employment and government support:
- Senior families: Median income rose 3.4% to $79,700
- Unattached seniors: Jumped 4.3% to $36,400
Government transfers to seniors increased slightly (up 1.4%), while their market income jumped by 5.0%. This suggests a trend where more seniors are staying in the workforce or have growing pension income.
Fact: Unattached seniors had a 9.3% rise in market income, climbing to $16,500.
Where You Live Still Matters
Income and poverty levels vary sharply depending on where you live in Canada. Here’s a breakdown of median after-tax incomes by region:
| Region | Median After-Tax Income (2023) |
| Alberta | $88,500 |
| Ontario | $78,600 |
| Nova Scotia | $62,900 |
| New Brunswick | $62,700 |
| Northwest Territories | $102,100 |
| Nunavut | $90,800 |
| Yukon | $84,500 |
Saskatchewan was the only province where median income dropped in 2023, down 2.8%. On the flip side, Nova Scotia had a healthy 3.5% gain.
The Uneven Reality of Poverty in Canada
The poverty rate remained largely unchanged in 2023 at 10.2%, affecting about 4 million Canadians. However, different groups are experiencing very different outcomes:
Seniors
- Lower poverty rate: Down to 5.0% from 6.0% in 2022
- Senior families: 3.6% (down from 4.3%)
- Unattached seniors: 11.5% (down from 13.8%)
Children & Adults (18–64)
- Children under 18: Steady at 10.7%
- Adults 18–64: Up to 11.6% from 11.1%
Indigenous and Racialized Populations
- Indigenous: 17.5% lived below the poverty line
- Racialized groups: Poverty rate rose to 14.0%
- Non-racialized Canadians: Stable at 8.5%
Disabilities and Poverty
Canadians with disabilities remain at higher risk, though there’s been progress:
- 12.0% of people with disabilities were in poverty in 2023
- Seniors (65+): 6.5% poverty rate
- Younger adults (15–64): 14.4% poverty rate
While the overall rate hasn’t changed much since 2022, it’s still lower than pre-pandemic levels, which is a positive shift.
Measuring Poverty: The MBM Shift
Canada uses the Market Basket Measure (MBM) as its official poverty line. A new methodology—the 2023-base MBM—is in development and may lead to slightly higher thresholds.
- Under the new method, poverty in 2023 could be measured at 10.9%, compared to 10.2% under the current system.
- This shift aims to better reflect the actual cost of living, using updated price and census data.
Once finalized in fall 2025, the new MBM will provide a more accurate picture of economic hardship across Canada.
What the 2023 Income Trends Tell Us
The Canadian economy is showing signs of recovery, but not everyone is reaping the benefits equally. While the median after-tax income rose to $74,200, certain groups—especially non-seniors, Indigenous peoples, and those in specific provinces—continue to face economic hardship. Policymakers and advocates need to stay focused on reducing inequality. Especially as the Canadian economy moves forward, making sure growth reaches all households is critical for long-term prosperity.
