- Capital gains tax rate 26.76 27.4
- Brackets updated
Corporate bracket `data_year` 2025 → 2026; refreshed `sources` list Source
Top income tax
33.0%
effective 54.8%
Corporate tax
15.0%
GST
5.0%
standard rate
Tax residency
183 days
95 tax treaties
Canada tax profile
Data year: 2026
- Tax system
- Worldwide Canada taxes residents on worldwide income. Non-residents taxed on Canadian-source income only.
- Top PIT rate
- 33.0% (eff. 54.8%)
- Corporate tax rate
- 15.0%
- GST
- 5.0%
- Capital gains tax
- 27.4% 50% inclusion rate on first CAD 250,000 of capital gains; 66.67% inclusion rate above that (effective 2024). Taxed at marginal rates on included portion.
- Social security (employee)
- 6.0%
- Social security (employer)
- 6.0%
- Social security cap (annual)
- CAD 74,600
- Dividend withholding
- 25.0%
- Interest withholding
- 25.0%
- Royalty withholding
- 25.0%
- Treaty count
- 95
Income tax brackets
Corporate
Regime: small_business
| Bracket min | Bracket max | Rate |
|---|---|---|
| CAD 0 | CAD 500,000 | 9.0% |
| CAD 0 | and above | 15.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| CAD 0 | CAD 58,523 | 14.0% |
| CAD 58,523 | CAD 117,045 | 20.5% |
| CAD 117,045 | CAD 181,440 | 26.0% |
| CAD 181,440 | CAD 258,482 | 29.0% |
| CAD 258,482 | and above | 33.0% |
Tax flags
Crypto Rules
Participation Exemption
Tax residency
- Days threshold
- 183 days
- Residency rules
- Resident if ordinarily resident or sojourning 183+ days in a calendar year. Factual determination based on significant residential ties (dwelling, spouse, dependents).
- Exit tax
- Yes Deemed disposition of assets at fair market value upon ceasing residency. Capital gains triggered on all property worldwide.
- CFC rules
- Yes Foreign Accrual Property Income (FAPI) rules tax Canadian shareholders of CFCs on passive income.
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- April 30
- Extension deadline
- June 15
Sources
- CRA 2026 federal income tax rates and brackets (accessed Oct 9, 2026) 2026 federal PIT brackets and rates (14% to 33%)
- CRA payroll — 2026 federal income tax thresholds (accessed Oct 9, 2026) 2026 federal bracket thresholds for payroll
- CRA CPP contribution rates and maximums 2026 (accessed Oct 9, 2026) YMPE CAD 74,600; employee/employer rate 5.95% on base CPP
- PwC Canada - Individual (accessed Oct 9, 2026) Federal PIT brackets; combined top marginal rates by province
- PwC Canada - Corporate (accessed Oct 9, 2026) Federal CIT rate 15%, CCPC 9% on first CAD 500,000 active business income
- PwC Canada - Corporate withholding (accessed Oct 9, 2026) Non-treaty WHT 25% on dividends, interest and royalties
- Canada — digital services tax repealed (accessed Oct 9, 2026) DST Act repealed 26 March 2026; tax no longer applies