Over the past several weeks Canadians from coast-to-coast have been diligently completing their income tax returns. Some Canadians will be pleasantly surprised by an unexpected refund, while others will be hit with the harsh realization that more must be paid.

For most Canadians, regardless of unexpected refunds or balances owing, the tax deadline provides a sobering reminder of just how much income tax they paid in 2005.

Many Canadians will rightly question whether or not they are getting their money’s worth for the taxes they pay. To answer this question however, it’s important to remember that income taxes form only a portion of our total tax bill.

In 2005, the average Canadian family consisting of two or more people earned approximately $76,634 in income, and paid $12,637 in income taxes, representing 16.5 percent of their income. While personal income taxes are the single largest tax Canadians pay, they represent only about one-third of our total tax bill.

Two other significant taxes that Canadians deal with on their tax returns are the Canada Pension Plan (CPP)—Quebec Pension Plan if you’re a resident of la belle province—and Employment Insurance (EI). In addition, residents of British Columbia, Alberta, Ontario, and Quebec, also pay health care taxes through either direct premiums or payroll taxes. All told, the average Canadian family paid some $8,169 in CPP, EI, and health taxes in 2005.

There are two other relatively visible taxes that Canadians pay, thankfully not at the same time as our income tax bill: property taxes and sales taxes. The average Canadian family paid about $2,128 in property taxes in 2005. One of the common misconceptions is that only homeowners pay property taxes. The truth of the matter is that property taxes for renters are included in their monthly rent, so in one way or another we all pay property taxes. For homeowners, at least the cost of property taxes is transparent since we each receive an annual bill.

Sales taxes are visible whenever we make a purchase upon which the tax is applied. Calculating the amount of sales taxes paid however, is difficult in that it requires people to track all of their purchases of taxable goods and services. Our estimates indicate that the average Canadian family paid about $6,269 in sales taxes last year. Sales taxes are second only to income taxes as the single largest government levy.

In addition to personal income taxes, payroll taxes, property taxes, and sales taxes, which are all visible to a certain degree, there are a host of taxes that Canadians pay, but do not see. For instance, profit taxes amounting to approximately $2,448 in 2005 were assessed indirectly on average Canadian families. Taxes on liquor, tobacco, and amusement amounted to $2,474 for the average Canadian family, while automobile and gas taxes totaled a little over $1,000. Finally, average Canadian families were assessed about $286 in import duties in 2005, another cost which is not easily discernable.

Summed up, the average Canadian family faced a total tax bill of $36,769 in 2005 against income of $76,634. The total taxes imposed on the average Canadian family consumed 48 percent of income. In other words, average Canadian families hand over nearly half of their income to Canadian governments.

It is critical for Canadians to understand that income taxes represent less than half their total tax bill. Understanding our total tax bill will enable each of us to better assess whether or not we as taxpayers are receiving value-for-money. At the very least, we should be able to hold our politicians much more accountable for the resources they extract from us.