Methodology of Tax Freedom Day Calculation

Published August 1, 2004

Tax Freedom Days are calculated on the Fraser Institute’s Canadian Tax Simulator (CANTASIM). Statistics Canada’s Social Policy Simulation Database and Model (SPSD/M) is an important part of the Fraser model for the 1992 through 2004 Tax Freedom Days. The Tax Freedom Day calculations from 1992 to 2003 were revised using updated provincial and federal budget numbers, and with data from Statistics Canada.

The taxes used to compute Tax Freedom Day include income taxes, property taxes, and sales taxes, as well as profit taxes, health, social security and employment taxes, import duties, license fees, taxes on the consumption of alcohol and tobacco (“sin” taxes), natural resource fees, fuel taxes, hospital taxes, and other levies.