Home BlogHow income percentiles actually work
Income

How income percentiles actually work

What it means to be in the 75th percentile, where the numbers come from, and why your province changes the answer.

When a tool tells you that $80,000 puts you "around the 75th percentile," it's making a precise claim: 75% of tax-filers earn less than you, and 25% earn more. The percentile isn't a grade or a score — it's just your rank in the line-up, expressed from 0 to 100.

Where the numbers come from

The income figures on Metrestick come from the Canada Revenue Agency's published tax-filer statistics and Statistics Canada's income tables. These are actual filed returns, not survey estimates, which is why the percentile breakpoints can shift year to year as the economy moves.

A percentile is a position, not a value. The 90th percentile is "the income you need to beat exactly 90% of filers" — and that income is different in every province.

Why your province matters

A salary that lands you in the top quarter in one province might be closer to the middle in another. Two things drive the gap:

  • The local income distribution. Provinces with more high-earning industries push the upper breakpoints higher.
  • Cost of living. The same dollar amount stretches differently, so "where you stand" on paper and "how it feels" can diverge.
PercentileMeaning
50thThe median — half earn less
90thTop 10% of filers
99thTop 1% of filers

Reading your own number

Once you know your percentile, the useful move is to compare like with like: same province, same year, ideally the same household type. You can check your own standing with the income percentile tool, and see how after-tax pay changes the picture with salary & take-home.

The headline number is a starting point, not a verdict — but it's a far better anchor than a gut feeling.