Census Profile, 2021 Census of Population
Profile table

Low-income status - The income situation of the statistical unit in relation to a specific low-income line in a reference year. Statistical units with income that is below the low-income line are considered to be in low income.

For the 2021 Census, the reference period for income data is the calendar year 2020, unless otherwise specified.

Prior to the 2021 Census, the LIM thresholds and the LIM low income statistics were derived and reported for the population residing outside of the territories and off reserve only. It was based on the consideration that the income, prices and expenditure patterns could be quite different in the territories and on reserve, and thus, could make the interpretation of the LIM low-income statistics difficult.

Since the 2016 Census, there were research studies that analyzed the feasibility of defining LIM thresholds that include the population living in the territories and on reserve, and examined the aspects that should be considered when interpreting low-income statistics based on this definition. With the guidance and support of such research, the 2021 Census expanded the coverage of the LIM concept to all regions in Canada, making it the only low-income concept that is applicable to the population living in the territories and on reserve.

Low-income measure, after tax (LIM-AT) - The Low-income measure, after tax, refers to a fixed percentage (50%) of median-adjusted after-tax income of private households. The household after-tax income is adjusted by an equivalence scale to take economies of scale into account. This adjustment for different household sizes reflects the fact that a household's needs increase, but at a decreasing rate, as the number of members increases.

Using data from the 2021 Census of Population, the line applicable to a household is defined as half the Canadian median of the adjusted household after-tax income multiplied by the square root of household size. The median is determined based on all persons in private households where low-income concepts are applicable. Thresholds for specific household sizes are presented in Table 2.4 Low-income measures thresholds (LIM-AT and LIM-BT) for private households of Canada, 2020, Dictionary, Census of Population, 2021.

When the unadjusted after-tax income of household pertaining to a person falls below the threshold applicable to the person based on household size, the person is considered to be in low income according to LIM-AT. Since the LIM-AT threshold and household income are unique within each household, low-income status based on LIM-AT can also be reported for households.

Low-income cut-offs, after tax (LICO-AT) - The Low-income cut-offs, after tax refers to an income threshold, defined using 1992 expenditure data, below which economic families or persons not in economic families would likely have devoted a larger share of their after-tax income than average to the necessities of food, shelter and clothing. More specifically, the thresholds represented income levels at which these families or persons were expected to spend 20 percentage points or more of their after-tax income than average on food, shelter and clothing. These thresholds have been adjusted to current dollars using the all-items Consumer Price Index (CPI). The LICO-AT has 35 cut-offs varying by seven family sizes and five different sizes of area of residence to account for economies of scale and potential differences in cost of living in communities of different sizes. These thresholds are presented in Table 2.5 Low-income cut-offs, after tax (LICO-AT - 1992 base) for economic families and persons not in economic families, 2020, Dictionary, Census of Population, 2021.

When the after-tax income of an economic family member or a person not in an economic family falls below the threshold applicable to the person, the person is considered to be in low income according to LICO-AT. Since the LICO-AT threshold and family income are unique within each economic family, low-income status based on LICO-AT can also be reported for economic families.

Prevalence of low income - The proportion or percentage of units whose income falls below a specified low-income line.

Economic family after-tax income decile group - The economic family income decile group provides a rough ranking of the economic situation of a person based on his or her relative position in the Canadian distribution of the adjusted after-tax income of economic families for all persons in private households.

Using data from the 2021 Census of Population, the population in private households is sorted according to its adjusted after-tax family income and then divided into 10 equal groups each containing 10% of the population. The decile cut-points are the levels of adjusted after-tax family income that define the 10 groups.

For the 2021 Census, the reference period for income data is the calendar year 2020, unless otherwise specified.

The Gini coefficient, or Gini index, is a measure of inequality that indicates how equally income is distributed for a given population. It measures how much an income distribution deviates from perfect equality. Values of the Gini coefficient can range from 0 to 1. A value of 0 indicates that income is equally divided among the population, with all units receiving exactly the same amount of income. At the opposite extreme, a Gini coefficient of 1 denotes a perfectly unequal distribution, where one unit has all of the income in the economy.

For the census, Gini coefficients are calculated for three types of adjusted household income—market income, total income and after tax income. Adjusted income is computed by dividing the household income by a factor equal to the square root of the household size (known as the equivalence scale). This adjustment for different household sizes takes into account economies of scale. It reflects the fact that the needs of a household increase, but at a decreasing rate, as the number of members increases.

The P90/P10 ratio is a measure of inequality. It is the ratio of the 90th and the 10th percentile of the adjusted household after-tax income. The 90th percentile means 90% of the population has income that falls below this threshold. The 10th percentile means 10% of the population has income that falls below this threshold.