What Is A HENRY — And Why Do They Lose So Much To Taxes

Michael Brewitt |
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HENRY’s

What Is A HENRY — And Why Do They Lose So Much To Taxes

You might be a HENRY and not even know it. HENRY stands for High Earner, Not Rich Yet - someone making a strong income, usually in the $100K–$500K range, but who hasn’t quite built significant long-term wealth. It’s a great place to be - but also a tricky one.

 

Here’s the hard truth: HENRYs are among the most heavily taxed people in Canada. And without the right strategies in place, it’s easy to lose hundreds of thousands of dollars to unnecessary taxes over your career.

 

At Brewitt Financial, we help high earners keep more of what they earn by creating smart, efficient financial plans. Let’s look at why taxes hit HENRYs so hard — and what you can do about it.

 

1. No Shelter From the Storm

Unlike ultra-high-net-worth individuals with complex tax shelters, most HENRYs pay full marginal tax rates on their income - often over 50% in Ontario. Without tax-smart planning, that’s a huge chunk gone every year.

2. Underusing Tax-Advantaged Accounts

Many HENRYs don’t fully leverage RRSPs, TFSAs, or new tools like the FHSA. Or they’re using them in ways that don’t align with their life stage or goals. We help you prioritize and structure your contributions for max impact.

3. Missed Incorporation Opportunities

If you're self-employed or run a side hustle, incorporation might allow you to retain income at much lower tax rates and build wealth inside the corporation. It’s not for everyone - but if it fits, the savings can be massive.

4. Lack of Income Splitting

There are legal ways to shift income to a lower-income spouse or family member using prescribed rate loans or spousal RRSPs. These strategies often go underused by busy professionals.

5. No Plan = Missed Opportunities

The biggest loss for most HENRYs isn’t a single mistake - it’s the cost of delay. Years of inaction add up, especially when compounding and tax deferral are involved.

 

If you’re earning a strong income but still feel like you’re not getting ahead, taxes might be the reason - and the right plan is the solution. At Brewitt Financial, we help HENRYs take control of their income, optimize their tax strategy, and start building real wealth.

Let’s turn your high income into lasting results. Book a conversation today and see what’s possible when you manage your finances efficiently!