Canada
Northern America · CA · 96 treaties
What is Canada's tax system?
Canada operates a worldwide tax system. This means residents are taxed on their global income.
Tax profile
| Corporate income tax | 15% |
| Withholding — dividends | 25% |
| Withholding — interest | 25% |
| Withholding — royalties | 25% |
| VAT / GST (standard) | 5% |
| Personal income (top rate) | 53.53% |
| Capital gains | 26.77% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | Yes |
| CFC rules | Yes |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Common questions
- What is the top personal income tax rate in Canada?
- The top personal income tax rate in Canada is 53.53%.
- What is Canada's corporate tax rate?
- The corporate tax rate in Canada is 15%.
- How are capital gains taxed in Canada?
- Capital gains in Canada are taxed at 26.77%.
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- significant residential ties (home, spouse/common-law partner, dependants)
- secondary residential ties (e.g., property, social/economic ties, driver's licence, passport, provincial health insurance)
- ordinary/factual residence based on all relevant facts and continuity of stay
- 183+ days in Canada in a tax year (deemed resident rule)
- certain Canadian government / Forces / Global Affairs Canada employment abroad (deemed resident rule)
Canada is not citizenship-based, and residence usually ends when significant residential ties are cut and the person no longer meets the factual or 183-day deemed-resident rules. It is still moderately hard because the CRA looks at all relevant facts, including continuing ties such as a home, spouse, dependants, and other connections, so leaving is not just a matter of crossing the border.
Source: Canada Revenue Agency
Tax treaty network (125)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Albania | — | — | — |
| Algeria | 15% | 15% | 15% |
| Argentina | 15% | 12.5% | 15% |
| Armenia | 15% | 10% | 10% |
| Australia | 15% | 10% | 10% |
| Austria | 15% | 10% | 10% |
| Azerbaijan | 15% | 10% | 10% |
| Bangladesh | 15% | 15% | 10% |
| Barbados | 15% | 15% | 10% |
| Belgium | 15% | 10% | 10% |
| Bolivia | — | — | — |
| Brazil | 25% | 15% | 25% |
| Bulgaria | 15% | 10% | 10% |
| Cameroon | 15% | 15% | 15% |
| Chile | 15% | 10% | 15% |
| China | 15% | 10% | 10% |
| Colombia | 15% | 10% | 10% |
| Costa Rica | — | — | — |
| Croatia | 15% | 10% | 10% |
| Cyprus | 15% | 15% | 10% |
| Czechia | 15% | 10% | 10% |
| Denmark | 15% | 10% | 10% |
| Dominican Republic | 18% | 18% | 18% |
| Ecuador | 15% | 15% | 15% |
| Egypt | 15% | 15% | 15% |
| Estonia | 15% | 10% | 10% |
| Finland | 15% | 10% | 10% |
| France | 15% | 10% | 10% |
| Gabon | 15% | 10% | 10% |
| Germany | 15% | 10% | 10% |
| Greece | 15% | 10% | 10% |
| Greenland | — | — | — |
| Guatemala | — | — | — |
| Guyana | 15% | 15% | 10% |
| Hong Kong S.A.R. | 15% | 10% | 10% |
| Hungary | 15% | 10% | 10% |
| Iceland | 15% | 10% | 10% |
| India | 25% | 15% | 20% |
| Indonesia | 15% | 10% | 10% |
| Iran | — | — | — |
| Ireland | 15% | 10% | 10% |
| Israel | 15% | 10% | 10% |
| Italy | 15% | 10% | 10% |
| Ivory Coast | 15% | 15% | 10% |
| Jamaica | 15% | 15% | 10% |
| Japan | 15% | 10% | 10% |
| Jordan | 15% | 10% | 10% |
| Kazakhstan | 15% | 10% | 10% |
| Kenya | 25% | 15% | 15% |
| South Korea | 15% | 10% | 10% |
| Kuwait | 15% | 10% | 10% |
| Kyrgyzstan | 15% | 15% | 10% |
| Latvia | 15% | 10% | 10% |
| Lebanon | 15% | 10% | 10% |
| Liberia | — | — | — |
| Lithuania | 15% | 10% | 10% |
| Luxembourg | 15% | 10% | 10% |
| Macao S.A.R | — | — | — |
| Malaysia | 15% | 15% | 15% |
| Malta | 15% | 15% | 10% |
| Mauritius | — | — | — |
| Mexico | 15% | 10% | 10% |
| Moldova | 15% | 10% | 10% |
| Mongolia | 15% | 10% | 10% |
| Morocco | 15% | 15% | 10% |
| Netherlands | 15% | 10% | 10% |
| New Zealand | 15% | 10% | 10% |
| Nicaragua | — | — | — |
| Nigeria | 15% | 12.5% | 12.5% |
| North Macedonia | — | — | — |
| Norway | 15% | 10% | 10% |
| Oman | 15% | 10% | 10% |
| Pakistan | 15% | 15% | 15% |
| Panama | — | — | — |
| Papua New Guinea | 15% | 10% | 10% |
| Paraguay | — | — | — |
| Peru | 15% | 15% | 15% |
| Philippines | 15% | 15% | 10% |
| Poland | 15% | 10% | 10% |
| Portugal | 15% | 10% | 10% |
| Qatar | — | — | — |
| Romania | 15% | 10% | 10% |
| Russia | 15% | 10% | 10% |
| Samoa | — | — | — |
| San Marino | — | — | — |
| Saudi Arabia | — | — | — |
| Senegal | 15% | 15% | 15% |
| Republic of Serbia | 15% | 10% | 10% |
| Seychelles | — | — | — |
| Sierra Leone | — | — | — |
| Singapore | 15% | 15% | 15% |
| Slovakia | 15% | 10% | 10% |
| Slovenia | 15% | 10% | 10% |
| South Africa | 15% | 10% | 10% |
| Spain | 15% | 10% | 10% |
| Sri Lanka | 15% | 15% | 10% |
| Saint Kitts and Nevis | — | — | — |
| Saint Lucia | — | — | — |
| Saint Vincent and the Grenadines | — | — | — |
| Sudan | — | — | — |
| Suriname | — | — | — |
| eSwatini | — | — | — |
| Sweden | 15% | 10% | 10% |
| Switzerland | 15% | 10% | 10% |
| Syria | — | — | — |
| Taiwan | 15% | 10% | 10% |
| United Republic of Tanzania | 25% | 15% | 20% |
| Thailand | 15% | 15% | 15% |
| Trinidad and Tobago | 15% | 10% | 10% |
| Tunisia | 15% | 15% | 20% |
| Turkey | 20% | 15% | 10% |
| Turkmenistan | — | — | — |
| Uganda | — | — | — |
| Ukraine | 15% | 10% | 10% |
| United Arab Emirates | 15% | 10% | 10% |
| United Kingdom | 15% | 10% | 10% |
| United States of America | 15% | 0% | 10% |
| Uruguay | — | — | — |
| Uzbekistan | 15% | 10% | 10% |
| Venezuela | 15% | 10% | 10% |
| Vietnam | 15% | 10% | 10% |
| Zambia | 15% | 15% | 15% |
| Zimbabwe | 15% | 15% | 10% |
| Madagascar | 15% | 10% | 10% |
| Namibia | 15% | 10% | 10% |