Per capita allocation distributes funds based on population, with each resident counting equally regardless of municipality size. Federal programs like the Canada Community-Building Fund (formerly Gas Tax) use per capita allocation, giving larger municipalities more total funding while maintaining equal per-person amounts. Per capita allocation is simple and transparent but may disadvantage small municipalities with high infrastructure costs relative to population, or municipalities with significant commuter or seasonal populations not reflected in resident counts. Some programs combine per capita with other factors like assessment or geography. Understanding allocation methodologies helps municipalities anticipate funding and advocate for formulas reflecting their circumstances.