Methodology
How your tax burden is calculated and where the data comes from.
Data snapshot: January 2026 · Tax year: 2026
How Your Tax Burden Is Calculated
Official CRA tax rates and formulas are used to calculate your total tax obligation.
Federal Income Tax
Progressive bracket calculation using 2026 federal tax rates
Source: CRA - Tax rates and income brackets for individuals
Includes basic personal amount credit calculation
Alberta Provincial Tax
Progressive bracket calculation using 2026 Alberta tax rates
Source: Alberta.ca - Taxes and levies overview
Includes new 8% bracket introduced in 2025
CPP Contributions
Base CPP + CPP2 (if applicable) on pensionable earnings
Source: CRA - CPP contribution rates, maximums and exemptions
CPP2 applies to earnings between YMPE ($74,600) and YAMPE ($85,000)
EI Premiums
1.63% of insurable earnings up to MIE
Source: CRA - EI premium rates and maximums
Maximum insurable earnings: $68,900 for 2026
Example: $75,000 Income
Federal tax: $9,268
Alberta tax: $4,454
CPP contributions: $4,246
EI premiums: $1,123
Total: $19,092 (25.5% effective rate)
These calculations match the CRA's official payroll formulas. Your actual tax may vary based on individual deductions, credits, and circumstances.
How Your Tax Dollars Are Allocated
A per-capita allocation methodology shows where your tax dollars go.
Allocation Method
Total program spending ÷ Canada population = per-capita allocation. Then scaled by your share of total tax revenue.
This is a simplified model. In reality, some programs (like EI) are funded by specific contributions. This model is used for illustrative purposes to show relative spending priorities.
How Your Debt Share Is Calculated
Federal debt is divided equally among all Canadians.
Per-person share
Accumulated deficit ($1.295T) ÷ Population (41.6M) = $31,130 per person
Per-taxpayer share
Accumulated deficit ÷ Number of tax filers (~29M) = $44,655 per taxpayer
Why "accumulated deficit"?
This site uses "accumulated deficit" as the debt measure. This represents the total debt the government owes. "Net debt" calculations that subtract illiquid assets like roads and buildings that will never be sold are rejected as misleading.
How Future Debt-to-GDP Is Projected
Projections use general government gross debt and actual deficit patterns.
Which Debt Measure Is Used
This site uses general government gross debt, which includes federal, provincial, and territorial government debt. This is the internationally comparable measure used by the IMF, OECD, and World Bank. It currently sits at approximately 115% of GDP.
Why Not “Net Debt”?
The federal government often reports “net debt” (~41% of GDP) which subtracts financial assets. This figure obscures the true debt burden because: (1) those assets cannot easily be liquidated, (2) provincial debt is excluded, and (3) it's not comparable to other countries' reported figures.
Data Sources
- • Statistics Canada Table 36-10-0580-01 (government debt)
- • IMF World Economic Outlook Database
- • OECD General Government Debt (% of GDP)
The Projection Approach
Government or PBO forecasts for future deficits are explicitly rejected. These forecasts consistently underestimate actual deficits. Instead, projections are based on observed deficit growth patterns.
Observed Pattern (2022-2025)
- • 2022-23 federal deficit: $35.3B (FES 2024, Table A1.1)
- • 2023-24 federal deficit: $61.9B (FES 2024, Table A1.1)
- • 2024-25 federal deficit: $48.3B projected (FES 2024)
- • Provincial deficits: ~$30-40B combined (RBC Provincial Fiscal Tables)
Combined deficits represent 3-5% of GDP annually, outpacing GDP growth.
Projection Methodology
1. Deficit Trajectory
A conservative 15-20% annual deficit growth rate is applied, which is actually more optimistic than recent observed patterns. This accounts for structural spending pressures (healthcare, aging population, debt interest).
2. GDP Growth
The model assumes 2-3% nominal GDP growth annually, which is consistent with long-term Canadian averages. This is relatively optimistic.
3. Debt-to-GDP Calculation
Each year: New Debt = Previous Debt + Deficit. Debt-to-GDP = Accumulated Debt / Nominal GDP.
Why Not Government Forecasts?
Government budget projections consistently show deficits shrinking and eventually disappearing. These projections have proven unreliable:
- • Budget 2023 projected 2024-25 deficit: $38.4 billion
- • FES 2024 2023-24 actual deficit: $61.9 billion
- • Variance: Consistently underestimated
Showing realistic trajectories based on actual behavior is more honest than repeating optimistic forecasts that never materialize.
The principle: Base projections on observed behavior, not promised behavior. If deficits have grown 30-50% annually for three years, assuming sudden fiscal discipline is wishful thinking.
Data Sources
Every figure is sourced from official government publications.
| Category | Source | Authority | Updates |
|---|---|---|---|
| Federal Income Tax | Tax rates and income brackets | Canada Revenue Agency | Annual (January) |
| Alberta Provincial Tax | Taxes and levies overview | Government of Alberta | Annual (post-budget) |
| CPP Contributions | CPP contribution rates, maximums and exemptions | Canada Revenue Agency | Annual (November) |
| EI Premiums | EI premium rates and maximums | Canada Revenue Agency | Annual (September) |
| Federal Expenditures | Government Expenditure Plan and Main Estimates | Treasury Board of Canada | Annual + Quarterly supplements |
| Main Estimates Analysis | Parliamentary Budget Officer | Per Estimates release | |
| Alberta Expenditures | Alberta Budget | Government of Alberta | Annual (late February) |
| Federal Debt | Annual Financial Report | Department of Finance Canada | Annual (Fall) |
| Fiscal Outlook | Parliamentary Budget Officer | Quarterly | |
| General Government Debt | Government debt (Table 36-10-0580-01) | Statistics Canada | Annual |
| World Economic Outlook Database | International Monetary Fund | Semi-annual (April/October) | |
| Alberta Debt | Alberta Fiscal Plan | Government of Alberta | Annual + Q3 update |
| Population Data | Population estimates quarterly | Statistics Canada | Quarterly |
| Inflation Data | Consumer Price Index | Statistics Canada | Monthly |
Update Schedule
Data is updated following major government releases.
Federal & Alberta Budgets
Updated immediately following release (typically February-April)
CPP/EI Rates
Updated each November when announced for following year
Tax Brackets
Updated each December for following tax year
Population Data
Updated quarterly from Statistics Canada
Frequently Asked Questions
Common questions about the data and methodology.
Don't taxes pay for important services?
Yes. Healthcare, infrastructure, and social programs provide real value. This site doesn't argue against taxation; it presents the mathematical trajectory. Current spending growth, debt accumulation, and demographic trends make the status quo unsustainable. The PBO confirms this. The question isn't whether taxes exist, but whether Canadians are getting value and whether this path continues.
Isn't this just conservative propaganda?
Every number links to government sources: PBO, StatsCan, Treasury Board. The site doesn't editorialize. It shows what you pay and where it goes. Draw your own conclusions.
Why only Alberta?
Alberta was the natural starting point given its unique equalization dynamics and well-documented fiscal data. The vision is to eventually expand to include other western provinces and territories who share similar concerns about fiscal federalism.
Why don't you include property tax?
Property tax is municipal, requires knowing your specific municipality and property assessment, and funds local services most people can see (garbage, fire, roads). Including it would add complexity and dilute the federal/provincial fiscal message.
Why don't you include sales tax (GST)?
GST varies dramatically based on individual spending patterns. Someone who saves 50% of income pays very different GST than someone who spends it all. Accurate calculation would require detailed spending data not available.
Is my income data stored?
No. All calculations happen in your browser. Your income never leaves your device. There is no server that receives or stores personal financial information.
How often is the data updated?
Data is updated following major government releases: federal and Alberta budgets (February/March), CPP/EI rates (November), and quarterly population estimates. The snapshot date on each page shows when data was last verified.
Why do you use 'accumulated deficit' instead of 'net debt'?
The government's 'net debt' calculation subtracts non-financial assets like roads, buildings, and land. These assets are illiquid, have no market value, and will never be sold to pay down debt. Accumulated deficit represents the actual money the government has borrowed and owes.
Can I verify your numbers?
Yes. Every major figure on the site includes a citation with the source document and URL. Click any citation to see the original government source.
Who made this?
drained.ca was built by an Albertan father concerned about the fiscal burden being left to the next generation. Not affiliated with any political party, think tank, or advocacy group. The only agenda is presenting government data in an accessible way.
Limitations & Disclosures
What isn't included and why.
Property Tax
Excluded because it's municipal, requires municipality selection, and funds visible local services. Adding it would complicate the federal/provincial message.
Sales Tax (GST)
Excluded because it varies dramatically by spending patterns. Accurate calculation would require detailed spending data.
Hidden Taxes
Fuel taxes, carbon taxes, alcohol/tobacco taxes, and other embedded taxes are excluded. These are complex to calculate and vary by consumption.
Accounting Principles
Certain government accounting practices that obscure fiscal reality are rejected.
Calling spending "investments"
All government outlays are spending, regardless of label. Private sector 'investments' have measurable ROI and can be liquidated. Government 'investments' in programs cannot.
Subtracting non-financial assets from debt
Roads, buildings, and land have no market value in government context. They will never be sold. Including them as an 'offset' to debt misleads.
Accrual smoothing of volatile items
Cash-basis is shown where it reveals the true annual picture. Accrual accounting can hide year-over-year volatility.
Excluding crown corporation debt
Taxpayers backstop crown corporations. Their debt is ultimately public debt.
The principle: If the government spent $1, that $1 came from either taxes or borrowing. The books must balance.
Data Accuracy Challenges
Found an error? Get in touch.
If you believe any figures are incorrect, please reach out with:
- The specific figure you believe is wrong
- The correct figure with source citation
- A link to the official government source
Email: [email protected]