The house prices in Vancouver are not remotely connected to the actual wealth of those living there though - It's expensive because of the massive amount of foreign money that poured in over the last 2-3 years (house prices have literally doubled, pricing most people out of the market). There are also differences in that most people both live and work in the same city, because the distances are so huge, few people commute from one town to another. There is a big disparity in income between certain parts of the country however, which the government try and reduce by equalisation payments - basically at the provincial level rich provinces give money the central government, who distribute it to the poorer provinces. Local taxation ring fenced for local needs will always going to cause issues regarding local services, however just because someone has a more expensive home than someone else in another part of the country (as opposed to someone in the same town/city) doesn't mean they should pay more. As in the UK there's not necessarily a correlation between income/wealth and house price. I'd argue that in many cases you could argue the opposite. Someone living in an area with high house prices may not be able to afford extra taxation compared to someone living in an area with lower house prices - they're already paying more per month in mortgage/rent without any guarantee that their pay is actually higher.