Canada tax rates
North America · headline statutory rates, 2025 · Moderate
In Canada, the top statutory personal income tax rate is 33% (ranked #48 of 96 countries), the headline corporate income tax rate is 15%, and the standard VAT/GST rate is 5%. Capital gains for individuals are treated as: 50% of gain taxed at ordinary rates. Overall it reads as a moderate jurisdiction on headline rates — broadly mid-range headline rates. These are statutory top rates, not the effective tax most people pay, and not tax advice — verify with Canada's official tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Canada tax rates at a glance
| Tax | Canada |
|---|---|
| Top personal income tax rate | 33% |
| Corporate income tax rate | 15% |
| Standard VAT / GST | 5% |
| Capital gains (individuals) | 50% of gain taxed at ordinary rates |
| Employee social security | Employee CPP + EI on capped earnings |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Headline statutory rates (2025), compiled from PwC Worldwide Tax Summaries and cross-checked against OECD / Tax Foundation data. Rates change — confirm with the official tax authority before relying on them. This is not tax advice.
What these Canada rates mean
The figures above are headline statutory rates: the top marginal personal income tax rate, the standard (not reduced) VAT/GST rate, and the main corporate rate. The top 33% income tax rate only bites on income above the highest bracket — the effective rate an average earner pays is lower. Consumption is taxed through VAT/GST at 5%, usually with reduced rates on essentials. Always layer in social security (Employee CPP + EI on capped earnings) and any local taxes for a full picture.
How Canada ranks
| Measure | Canada | Rank (1 = highest) |
|---|---|---|
| Top personal income tax | 33% | #48 of 96 |
| Corporate income tax | 15% | #71 of 96 |
| Standard VAT/GST | 5% | #82 of 87 |
Countries with a similar tax level to Canada
The five countries closest to Canada on overall headline tax level:
| Country | Top income tax | Corporate tax | VAT/GST |
|---|---|---|---|
| Canada (this country) | 33% | 15% | 5% |
| Lebanon | 25% | 17% | 11% |
| Georgia | 20% | 15% | 18% |
| Gibraltar | 39% | 15% | No VAT |
| Hungary | 15% | 9% | 27% |
| Serbia | 20% | 15% | 20% |
Frequently asked questions
What is the income tax rate in Canada?
The top statutory personal income tax rate in Canada is 33%. This is the highest marginal rate, which only applies above the top income threshold — most taxpayers pay less. It ranks #48 of 96 countries in our dataset by top rate. Headline rate as of 2025; verify with the official tax authority.
What is the corporate tax rate in Canada?
Canada's headline corporate income tax rate is 15%, ranking #71 of 96 by headline corporate rate. Effective rates can differ with incentives, surcharges and local taxes. Verify with the official authority.
Does Canada have VAT or sales tax?
Yes — the standard VAT/GST rate in Canada is 5% (Federal GST 5%; combined with provincial up to 15%). Reduced rates often apply to food, medicine and other essentials.
Is Canada a high-tax or low-tax country?
On headline statutory rates, Canada looks like a moderate jurisdiction — broadly mid-range headline rates. This is a rough signal from top rates only, not the effective tax an average person or company pays. Tax residency, deductions and treaties change the real picture. Not tax advice.
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Sources & accuracy
Headline rates for Canada from PwC Worldwide Tax Summaries, cross-checked with the OECD and Tax Foundation. Data as of June 2026; reflects roughly the 2025 tax year. These are statutory headline rates, not effective rates, and this page is general information, not tax advice — verify with Canada's official tax authority and a qualified adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-20