By Veeno Dewan
The income gap in Canada remains at a “record high,” according to newly released data, highlighting the growing divide between the wealthiest groups and those struggling with affordability—especially among young families. The richest households continue to hold the vast majority of Canada’s wealth, and that trend is growing. According to Statistics Canada, “During the second quarter of 2025, from April through June, the income gap in Canada remained at an all-time high of 48.4 per cent.” The report also revealed, “The country continues to face challenges amid a weakening economy that negatively affected household income and net savings across income distribution.”
Wealth distribution in Canada varies by province, with Ontario and British Columbia generally having the highest overall wealth and significant wealth inequality. This is largely due to expensive real estate, which inflates asset values, and low wages for lower-income families.
Statistics Canada measures Income Inequality using Gini coefficients, which range from 0 to 1, with higher values indicating greater inequality. This can sometimes be shown as a percentage from 0 to 100%, called the “Gini Index”. A value of 0 indicates perfect equality, where everyone has the same income. British Columbia’s most recent Gini Index measuring income inequality was 0.306. In Greater Vancouver, the Gini Index was 0.385.
The Government of Canada and Statistics Canada also use wealth surveys (such as the Survey of Financial Security) to track overall wealth concentration, showing that the top Canadian Income earners hold a disproportionate share of national wealth in some provinces. However, there are variables- for example, while Ontario and BC drive overall wealth and inequality due to high Real Estate, Alberta leads in income, and the various Canadian Territories often top income charts, making wealth distribution a complex picture across Canada.
British Columbia has the highest Income Inequality in Canada
British Columbia has experienced record-high income inequality for many years, with recent 2025 data showing the gap between the richest 20% and the poorest 20% of households at an all-time high. B.C.’s. The richest 20 per cent of the population holds 53 per cent of disposable income, the highest rate in Canada, while the poorest 20 per cent holds only 3 per cent.
The widening wealth gap is exacerbated for the poorest households by rising living costs and insufficient low-wage earnings, leading to increased food and housing insecurity and growing rates of child poverty. even for working families. The Key Indicators for the record inequality gap in B.C., using 2025 Statistics, show the following data factors (2025 information).
The Widening Wealth Gap
The wealth gap between the top 20% and the bottom 40% widened to 61.5 percentage points, with wealthier groups benefiting more from gains in financial assets. Meanwhile, low-income households saw slower income growth, with some wages even edging down, while many working families rely on food banks to feed their families.
Contributing Factor to the Income Inequality
Factors for such vast inequality include past tax cuts that disproportionately favour top earners, low wages insufficient to cover living costs, and the rising cost of living, with ever more expensive housing, groceries, energy, and general inflation that put a strain on low-income households. The unaffordability of entry into the property market due to high prices also excludes a large share of British Columbians, particularly young people, Indigenous, and immigrant communities, from accumulating equity and income-producing assets, which is often a step toward becoming wealthy and producing generational wealth.
According to the data, while overall income grew in B.C. over the last five years, the gains were heavily concentrated at the top, leaving many lower- and middle-income families behind and creating an unsustainable level of inequality. Statistics Canada says in its findings. The “poverty gap”—the difference between the median incomes of poor families and the poverty line—has grown significantly in British Columbia.
Tackling Wealth Inequality
Tackling wealth inequality in Canada requires a multifaceted approach that includes progressive taxation, including wealth taxes on high-income earners to ensure the wealthy pay their fair share, and the closing of tax loopholes that favour wealthy earners. These measures would prove unpopular with the wealthy and business community.
British Columbia has been progressive in increasing the minimum wage, expanding access to services such as affordable housing, affordable childcare, and skills training, and strengthening workers’ rights. However, critics point to the need for measures such as more inclusive social safety nets, some form of Universal Basic Income, and enhanced social assistance. These services will require more public spending—resulting in higher taxes. As one of Canada’s wealthiest provinces with the third-highest GDP per capita, BC has options to address the important issue of Income Inequality, which requires political will.
Sources – Statistics Canada, Government of Canada, BC Government, Together BC Annual report 2023, 2024 BC Poverty Report, BC Human Rights Commission, Policy Alternatives report.
Image source: Pexels.com
