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.
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.
- 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
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.
Sources (1)
Frequently asked
What is the income tax rate in Canada?
The top marginal personal income tax rate in Canada is 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.
What is the corporate tax rate in Canada?
The headline corporate income tax rate is 15% federal, ~26.5% combined with provincial tax..
Does Canada tax capital gains?
Capital gains for individuals: 50% of the gain included and taxed as income (proposed 66.67% inclusion-rate increase was cancelled in 2025).