A new study from the Fraser Institute reveals that Canadian income taxpayers outside Alberta would have to pay roughly $1,000 more annually in higher taxes to sustain current federal spending levels if not for the outsized net contribution made by Albertans to federal finances.
Key Findings
From 2007/08 to 2026/27, Albertans' net contribution to Ottawa is projected to reach $321.9 billion—nearly four times that of British Columbians ($87.8 billion) and more than five times Ontarians' net contribution ($59.6 billion). During this period, the other seven provinces were net recipients, meaning they received more money from Ottawa than they sent.
Impact on Other Provinces
Without Alberta's net fiscal contribution, maintaining federal spending levels would require income taxpayers in other provinces to pay an additional $1,007 per year on average.
“Many Canadians don’t realize what a sizeable contribution Albertans make to federal finances and how taxpayers in other provinces benefit from it,” said Tegan Hill, Director of Alberta Policy at the Fraser Institute and co-author of the study Illustrating Albertans’ contribution to the rest of Canada.
Broader Implications
Hill emphasized the importance of understanding these dynamics as Canadian federalism becomes central to policy discussions. “It is important that all Canadians and policymakers understand the significant contribution Albertans make every year to federal finances and how Canadians in other provinces benefit from that,” she said.
The Fraser Institute, an independent, non-partisan Canadian public policy think-tank, conducts research and educational activities to improve the quality of life for Canadians. It does not accept government grants or contracts for research.
