Where the Money Goes

The money we pay as tax on our income goes to the government of Canada and to the government of our province.

Where do these governments spend our money? Read the lists below to find out.

The Federal Government

The federal government spends our income tax money on things that are the same everywhere in Canada. For example, they spend it on:

• Employment Insurance

• the armed forces

• the RCMP

• the Canada Pension Plan

• immigration officers and customs officers

• transfer payments to the provinces

The Provincial Government

Our provincial government spends our income tax money on things that may be different in every province. For example, they spend it on:

• hospitals

• schools

• roads

• some of the social assistance payments *

• disability support programs

• provincial police

By the way… The money you pay as income tax doesn't go to public libraries, community centres or garbage collection. Those are paid for by municipal governments, using money from a tax on land and buildings.

* Social assistance programs are shared between the provincial and municipal governments