North & Central America
Canada: tax at a glance
Residents are taxed on worldwide income at combined federal and provincial rates. There is no estate tax, but a deemed disposition of assets applies at death and on emigration.
Worldwide (residence-based)
Last verified
Ways to relocate to Canada
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 33% federal, ~53% combined with provincial tax.The federal rate is progressive, topping out at 33% above ~CAD 258k. Provincial tax comes on top of that, and combined top rates range ~50–54%, for example 53.53% in Ontario and 54.8% in Newfoundland.
- Corporate income
- 15% federal, ~26.5% combined with provincial tax.
- Capital gains
- 50% of the gain included and taxed as income (proposed 66.67% inclusion-rate increase was cancelled in 2025)
- VAT / GST/HST
- 5% GST at the federal level.
- Dividends (WHT)
- 25%
- Interest (WHT)
- 25%, though arm's-length interest is often taxed at 0%.
- Royalties (WHT)
- 25%
- Social security (employee)
- ~7.6%, made up of CPP at 5.95% and EI at 1.63%.
- Social security (employer)
- ~8.2%, made up of CPP at 5.95% and EI at 2.28%.
- Wealth tax
- None
- Inheritance / estate
- None. Assets are subject to deemed disposition at death, taxed as capital gains.
- Property tax
- Municipal property tax, roughly 0.5–2.5% of assessed value.
- Other
- Provincial income tax comes on top of that. HST runs as high as 15% in Atlantic provinces and Ontario.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
There is none. The 60-month immigration trust exemption, Canada's only meaningful inbound regime, was repealed effective 2015.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.