Everybody thinks you need a $200,000 salary to be in the top 10% of Canadians. But the real number? It’s way lower than you’d expect.
In this blog post, we’re breaking down how much it actually takes to be in the top 10%, 5%, and 1% of earners in Canada—and why the numbers might surprise you. They definitely surprised me.
And don’t miss the end, where I’ll compare these top earners to average incomes by age groups across Canada so you can see where you stand.
💰 What Does It Take to Be in the Top 10% in Canada?
To join the top 10% of individual income earners in Canada, you needed to earn at least $111,900 in total income in 2022, (meaning income from all sources), according to Statistics Canada.
Within that top 10%:
- Median income: $147,100
- Average income: $197,900
📊 Top 10% Income Thresholds, Median, and Average Incomes (2018–2022)
| Year | Threshold Income Needed to Enter Top 10% | Median Income of top 10% | Average Income of top 10% |
| 2018 | $97,900 | $126,500 | $169,700 |
| 2019 | $100,000 | $129,600 | $174,400 |
| 2020 | $102,200 | $132,200 | $176,600 |
| 2021 | $106,700 | $139,000 | $190,000 |
| 2022 | $111,900 | $147,100 | $197,900 |
Source: Statistics Canada, Table 11-10-0055-01
🧠 Quick Breakdown: What’s the Difference?
- Threshold = The minimum income needed to be included in the top 10%. Earn less than this? You’re not in the group.
- Median income = The middle point within the top 10%. Half earn more, half earn less.
- Average income = The mean of all incomes in the top 10%.
📈 Key Trends and Insights
1. Rising Entry Bar
Between 2018 and 2022, the threshold to enter the top 10% rose by 14.3%, from $97K to $111K reflecting higher overall income levels among Canada’s top earners.
2. Median vs. Average
By 2022, the average income was $197,900, which is over $50,000 higher than the median of $147,100. That gap shows how a small number of ultra-high earners are significantly lifting the average, highlighting growing income concentration at the very top. Billionaires like Jim Pattison, with an estimated net worth of over $11 billion skew the average here.
3. Economic Resilience
Despite significant events like the COVID-19 pandemic, top earners continued to see income growth, highlighting how this segment remained relatively insulated from broader economic shocks.
4. Growing Inequality
As both median and average incomes in the top 10% rise faster than inflation and national income averages, the data points to a continued widening of income inequality in Canada.
I was actually surprised at how low these numbers were, I would have thought it took at least $150K to crack the top 10%, but it’s only 111K.
What life looks like for the top 10%:
Meet David – A Top 10% Earner in Canada
David is 37, works as an engineer in Calgary’s oil and gas industry, and earns around $120,000 a year—just enough to land him in Canada’s top 10% of income earners. He lives with his partner and two kids in a modest three-bedroom home. It’s not flashy, but it’s comfortable and manageable.
They drive a hybrid SUV and a used hatchback. David’s not cheap, just intentional—automating contributions to his RRSP, TFSA, and RESPs, and slowly growing a non-registered investment account.
The family takes one nice vacation a year—maybe a cabin in BC or a budget-friendly trip to Europe. They can afford dinners out, sports and music lessons for the kids, and the occasional surprise expense without stress.
He still keeps an eye on inflation, but there’s peace of mind in knowing they’re prepared. Life in the top 10% isn’t luxurious—it’s stable, flexible, and full of quiet wins.
Another thing the top 10% do is track their wealth. Check out my free Net Worth Tracker for Canadians. It’s a simple way to stay on top of your finances.
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💰 What Does It Take to Be in the Top 5% in Canada?
To make it into the top 5% of individual income earners in Canada, you needed to earn at least $147,100 in total income in 2022—that includes income from all sources, according to Statistics Canada.
Within that top 5%:
- Median income: $193,800
- Average income: $269,200
📊 Top 5% Income Thresholds, Median, and Average Incomes (2018–2022)
| Year | Thrshold Income Needed to Enter Top 5% | Median Income of top 5% | Average Income of top 5% |
| 2018 | $126,500 | $166,100 | $229,600 |
| 2019 | $129,600 | $170,500 | $236,400 |
| 2020 | $132,200 | $173,600 | $238,500 |
| 2021 | $139,000 | $183,300 | $259,600 |
| 2022 | $147,100 | $193,800 | $269,200 |
Source: Statistics Canada, Table 11-10-0055-01
📈 Key Trends and Insights
1. Steady Climb in Entry Threshold
Between 2018 and 2022, the minimum income to reach the top 5% rose by 16.3%.
2. Median vs. Average
In 2022, the average income for the top 5% was $269,200, which is about $75,000 more than the median. That sizable gap suggests that the top 1% within this group is lifting the average significantly—another indicator of growing income concentration at the very top.
3. High Tax Contribution
Top 5% earners paid an average of $87,700 in income taxes in 2022, and they contributed over 41% of all federal and provincial personal income taxes—despite being just 1 in 20 taxpayers.
4. Consistent Membership
Roughly 76% of top 5% earners in 2022 were also in this group the previous year, and 86% had been in the top 5% at least once in the prior five years. This suggests that many high earners stay at the top for extended periods.
🏡 What Life Looks Like in the Top 5%
👩💼 Meet Rachel – A Top 5% Earner in Ottawa
Rachel is 45 and earns $160,000 as a senior policy analyst with the federal government—comfortably placing her in Canada’s top 5%. She and her partner recently upgraded to a detached home in a quiet Ottawa suburb. It wasn’t cheap, but thanks to dual incomes and disciplined saving, the mortgage is under control.
Their household runs smoothly: an SUV for the family, a leased electric car through Rachel’s work, and no stress when something breaks or needs replacing. Every year, they max out their RRSPs and TFSAs, contribute to their kids’ RESPs, and invest extra in a taxable account.
But it’s the lifestyle freedom that stands out. Their kids go to private school with a focus on arts and languages. They take international vacations every summer—France last year, Japan the year before—and squeeze in weekend getaways to the lake. They eat out when they want to, splurge on clothes and gifts, and still sleep well at night knowing they’re on track for retirement.
Rachel doesn’t flaunt wealth—but she’s quietly built a life of stability, flexibility, and future options. That’s what being in the top 5% can buy you: not luxury for the sake of it, but peace of mind and freedom that most Canadians are still striving for.
💰 What Does It Take to Be in the Top 1% in Canada?
To reach the top 1% of individual income earners in Canada, you needed to earn at least $283,200 in total income in 2022, including all sources of income, according to Statistics Canada.
Within that top 1%:
- Median income: $388,200
- Average income: $586,900
📊 Top 1% Income Thresholds, Median, and Average Incomes (2018–2022)
| Year | Income Needed to Enter Top 1% | Median Income | Average Income |
| 2018 | $244,800 | $338,400 | $496,200 |
| 2019 | $250,300 | $345,300 | $513,700 |
| 2020 | $253,800 | $349,900 | $512,000 |
| 2021 | $271,300 | $378,900 | $579,100 |
| 2022 | $283,200 | $388,200 | $586,900 |
Source: Statistics Canada, Table 11-10-0055-01
📈 Key Trends and Insights
1. Big Numbers, Bigger Growth
From 2018 to 2022, the threshold to enter the top 1% jumped by 15.7%. Median income rose by nearly 14.7%, while average income rose by 18.3%—outpacing both inflation and broader wage growth in Canada. The rich truly do get richer.
2. Median vs. Average
In 2022, the average income for the top 1% was nearly $200,000 higher than the median. This huge gap is a clear sign of how much income is concentrated among the ultra-elite—especially the top 0.1%.
3. Heavy Tax Contributors
Top 1% earners paid an average of $231,600 in income taxes in 2022. Even though they make up just 1 in 100 taxpayers, they contributed over 22% of all federal and provincial income taxes.
4. Staying at the Top
Around 69% of top 1% earners in 2022 were also in the 1% the year before. And 96% had been in the top 5% at least once in the past five years. It’s hard to get into this club—but once you’re in, many tend to stay there.
🏡 What Life Looks Like in the Top 1%
Meet Mark – Living the Top 1% Life in Toronto
Mark is 48, runs a successful marketing agency, and earns over $320,000 a year—solidly in Canada’s top 1%. He lives in Leaside, one of Toronto’s most sought-after neighbourhoods, with his partner and two kids.
They own a detached home in the city and a lakeside cottage in Muskoka. The kids attend private school, play competitive hockey, and their calendar is packed with activities. Mark flies business class on points—Bali, Paris, Banff—wherever they feel like going.
He maxes out his RRSP, TFSA, and RESP, but most of his wealth is in a holding company—invested in real estate, stocks, and private deals. His advisory team meets with him quarterly to keep things running smoothly.
Mark also gives back, donating to youth mental health causes and setting up a donor-advised fund to involve his kids.
But don’t mistake it for easy. Mark’s calendar is full, his business demands high performance, and rising taxes keep his advisory team busy.
Like a wise man once said: “Mo money, mo problems.”
Still, he wouldn’t trade the freedom: the ability to work when he wants, invest how he wants, and build something lasting for his family.
📊 Let’s compare the top earners to the average Canadian.
Here’s a look at the median income for Canadians by age group:
| Age Group | Median Income |
| 25–34 | $48,100 |
| 35–44 | $60,300 |
| 45–54 | $60,400 |
| 55–64 | $48,900 |
| 65 and older | $34,600 |
Remember,
- To enter the top 10% of earners in Canada, you need to make at least $111,900
- For the top 5%, it’s $147,100
- And for the top 1%, it’s $283,200
💡 Reality Check:
- The highest median income (45–54) is still $51,500 below the top 10% threshold.
- The top 5% threshold of $147,100 is more than double what most Canadians earn.
- And the top 1%? You’d need to make nearly 6x more than the average 25–34-year-old.
Whether you’re in the top or bottom 10%, 5%, or 1% of Canadians, remember—income is just the start. It’s what you do with it that builds freedom, flexibility, and long-term wealth. Take the story of Ronald Read, a janitor from Vermont who quietly amassed an $8 million fortune through simple, consistent investing. He didn’t earn a high salary, but he made every dollar count.
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Let’s keep climbing that income ladder—together.
