Families in Canada are spending a significant portion of their income on healthcare, which is nearly on par with other household expenses.
Since they don’t directly pay for medical services, most Canadians “grossly underestimate” exactly how much healthcare costs them each year, according to a new study by the Fraser Institute, an independent, non-partisan Canadian public policy think tank. In fact, most are only aware of partial costs through employer health taxes and contributions.
The study notes that when people speak of “free” healthcare in Canada, they often overlook the taxpayer-funded costs of the system.
“Canadians pay a substantial amount of money for healthcare through a variety of taxes — even if we don’t pay directly for medical services,” stated Nadeem Esmail, director of health policy studies at the Fraser Institute, and co-author of the study.
How much is “free” healthcare costing you?
Fraser Institute
This year, an average family of four in Canada with an average household income of $188,691 will pay an estimated $19,060 for public healthcare insurance. Here are the amounts Canadians can expect to pay, which depend on their income and the size of their household:
Unattached individuals with an average income of $60,032 will pay $5,703
A couple with no children with an average income of $158,477 will pay $17,338
A family with two parents and one child with an average income of $182,805 will pay $18,336
A family with two parents and two children with an average income of $188,691 will pay $19,060
A family with one parent and one child with an average income of $79,124 will pay $5,934
A family with one parent and two children with an average income of $87,296 will pay $5,213
Healthcare costs vs. income
Elena Berd/Shutterstock
Canadian families are spending more on healthcare than ever before.
From 1997 to 2025, the average family’s income increased by 159 per cent. Over those 28 years, spending on shelter increased by 161.1 per cent, food by 115.8 per cent, and clothing by 17.9 per cent. By contrast, since 1997, the average Canadian family (of all types) has seen healthcare insurance soar by an astounding 256.4 per cent.
That means that over the past 28 years, the cost of public healthcare grew 1.6 times faster than the average income.
However, a look at the past decade shows that healthcare costs have risen at a much slower pace, with an average annual increase of just 3.1 percent.
From 2015 to 2025, the average family income grew by 41.2 per cent, while spending on healthcare increased by 35 per cent. It’s possible that overall living costs outpaced healthcare, with families spending 37 per cent more on shelter and 36 per cent more on food, even as they spent 31.4 per cent less on clothing.
The study aims to provide Canadians with a clearer understanding of how much they pay and how that amount is changing.
“With a more precise estimate of what they really pay, Canadians will be in a better position to decide whether they are getting a good return on the money they spend on healthcare,” reads the study.
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