Number of households earning $100K or more in Canada - Data and Analysis (2000-2032)

In 2026, the number of Canadian households earning $100,000 or more is projected to grow 4.4% to reach 6.7 million. Because the threshold is measured in current dollars, ongoing wage growth and inflation continue to lift more households over the line each year, even when real income gains are modest. However, conditions have become tougher. The economy slipped into a technical recession early in the year and the collapse of trade talks with the United States in August brought steep new tariffs. Job losses in manufacturing and the public sector have softened the labor market and wage growth has cooled. Still, affluent households continue to outperform, supported by strong equity market returns and higher self-employment income. An energy price shock has kept inflation elevated, which is squeezing lower-income households but adding to nominal income gains.From 2021 to 2026, growth in the number of households earning over $100,000 has averaged 5.4% annually. The period began with a strong recovery from the pandemic, as reopening and a tight labor market pushed employment and wages higher. Inflation then surged to a four-decade high in 2022 and the wage settlements that followed lifted nominal incomes sharply. Since the driver is measured in current dollars, this inflation-driven wage growth moved many middle-income households, particularly dual-earner couples, above the threshold even as real purchasing power stagnated.Record population growth driven by immigration boosted household formation in 2023 and 2024, expanding the pool of working-age earners. The Bank of Canada's aggressive rate hikes raised debt servicing costs, but higher-income households benefited from stronger returns on savings and investments. Rate cuts beginning in mid-2024 eased pressure on borrowers and supported rising asset values, which mainly favored affluent households.Growth slowed in 2025 and 2026 as US tariffs weighed on manufacturing and resource industries and federal immigration cuts curbed population growth. Statistics Canada data show the income and wealth gaps between the top and bottom 40% of households widened to record levels in 2025, as investment and wage gains accrued mostly to top earners while incomes at the bottom stalled. Gains have been concentrated in major cities and resource-rich Alberta, which has led job creation.