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By Tegan Hill and Nathaniel Li
Illustrating Albertans’ Contribution to the Rest of Canada
- Due to relatively high employment rates, higher average incomes, and younger population, Albertans make an outsized contribution to federal finances compared to other provinces, contributing significantly more to federal revenues and national programs than they receive in transfers and federal spending.
- Albertans’ large net contribution benefits all Canadians by helping to fund government programs and to keep taxes lower than they otherwise would be in other provinces. However, the scale and impact of this contribution is not widely understood.
- This essay aims to provide context by estimating how much taxes would have to increase for the rest of Canada without Albertans’ large net fiscal contribution.
- From 2007/08 to 2026/27, Albertans’ net contribution is a projected $321.9 billion—nearly four times British Columbians’ ($87.8 billion) and more than five times Ontarians’ net contribution ($59.6 billion) while the other seven provinces are net recipients. Maintaining the status quo in the rest of Canada without Albertans’ net fiscal contribution over this period would have required income taxpayers in other provinces to pay, on average, an additional $1,007 per year.
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