This is a rewrite of something I first checked in 2007, what is rich in Canada? After there is a 2025 update on that data from Stats Canada.
Stats Canada has published an interesting article outlining what your income level in Canada needs to be, to think of yourself as RICH (for 2004 at least):
An annual income of $89,000 was enough to put an individual among the 1.2 million Canadians who made up the top 5% of the country’s taxfiler population in 2004, according to a new study.
Similarly, an income of $181,000 was sufficient to put someone among the 237,000 people in the top 1% of the taxfiler population.
But to be part of the richest one-hundredth of a percent (0.01%) of taxfilers, Canadians had to have income of more than $2.8 million, the study found.
Income of Canadians, 2010
Interesting striation of the data. Now, this is individual income too. I'm not sure how they would measure dual income families and such. Are you Rich? Really Rich? Super Rich?
September continues on, and with the beginning of Autumn, do you need to start thinking about fall financial things?
- RESP top ups for the end of the year?
- RRSP top ups as well?
- Insurance coming due soon?
- Property tax assessments coming?
- Prepare for the holiday season by planning what you are going to spend. Consider figuring out "who gets what" early on.
Just some of the ideas to think about instead of sitting on y our rump!
What is RICH in Canada? (2025 Update)
Back in 2007, we discussed what it meant to be considered 'rich' in Canada. Fast forward to 2025, and the financial landscape has shifted significantly. Let's explore the current thresholds that define wealth in our country.
💰 Income Thresholds
According to Statistics Canada, an individual needs an annual income of approximately $250,000. This income level places them among the top 1% of earners in 2025. This is a substantial increase from the $181,000 required in 2004.
🏠 Net Worth Benchmarks
When it comes to net worth, the disparities are even more pronounced. The top 20% of Canadian households hold an average net worth of $3.3 million, accounting for nearly two-thirds (64.7%) of the nation's total net worth. In contrast, the bottom 40% hold just 3.3%, with an average net worth of $83,189. (Source)
📈 The Evolving Definition of 'Rich'
These figures highlight the growing income and wealth inequality in Canada. What was once considered 'rich' is now merely average in some urban centers. The cost of living continues to rise. This is especially true in cities like Toronto and Vancouver. Consequently, the benchmarks for wealth are continually being redefined.
📝 Final Thoughts
Understanding these thresholds is crucial for financial planning and setting realistic goals. Whether you're aiming for a specific income bracket or targeting a net worth milestone, it is important to stay informed about these benchmarks. This knowledge can help guide your financial journey.
🔗 Explore More: External Resources from Statistics Canada
- 📊 Income Statistics – Top 1% Thresholds:
High income tax filers in Canada - 💰 Wealth Distribution by Net Worth Quintile:
Distribution of household economic accounts - 📉 Income Inequality Trends:
Distribution of household income, Canada - 🏠 Household Spending and Net Worth:
Survey of Financial Security (SFS) - 📌 Defining the Middle Class in Canada – Historical Context:
Income Research Papers & Studies
Good data, now how about a different take – finding out how much net assets instead of income counts as rich?
Excellent take!
I think that ‘rich’ would be much further down on the list than the top 5%. I would gather that Rich has a much different meaning for each person, but I would think if you are in the top 25% of the population you should probably be considered ‘rich’.
If you walk down the street knowing that out of every four people you see you are probably making more than three of them, you probably shouldn’t need to worry about money if you manage your money well.
Though, then again, at 5% and only $89,000 was the magic number. With 32% to put toward a house that leaves you only leaves $2373 a month for a housing payment. A home in Vancouver on 2006 the average selling price from the CREA was $520,686 with 20% down ($104,137.20) anda 4.99% interest rate that makes your payments $2,420.30.
So even the top 5% of the population can’t buy the average selling home in Vancouver. Maybe only the top 4% of the population lives there?
P.S. I know, wages from 2004, CREA from 2006 . . . blah blah blah, I still stand by my point. No one should be buying houses in places that are that expensive.