North & Central America
Canada tax rates 2026
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
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 The 60-month immigration trust exemption, Canada's only meaningful inbound regime, was repealed effective 2015.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Canada
The residency and citizenship routes that lead here, weighed against the tax picture above.