🇨🇦 Canada
CA / CAN #2
Nomad Score
61.0
Cities
35
🇨🇦 CANADA TAX PROFILE
Data year: 2026
Tax System
Worldwide
Canada taxes residents on worldwide income. Non-residents taxed on Canadian-source income only.
Canada taxes residents on worldwide income. Non-residents taxed on Canadian-source income only.
Top PIT Rate
33.0%
(eff. 53.5%)
Corporate Tax Rate
15.0%
GST
5.0%
Capital Gains Tax
26.8%
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.
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%
SS Cap (Annual)
CAD 74,600
Dividend Withholding
25.0%
Interest Withholding
25.0%
Royalty Withholding
25.0%
Treaty Count
95
Digital Services Tax
Crypto Rules
Participation Exemption
📊 INCOME TAX BRACKETS
Corporate
Regime: small_business
| Bracket Min | Bracket Max | Rate % | USD Equivalent |
|---|---|---|---|
| CAD 0 | and above | 15.0% | -- |
| CAD 0 | CAD 500,000 | 9.0% | -- |
Personal income
| Bracket Min | Bracket Max | Rate % | USD Equivalent |
|---|---|---|---|
| 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 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.
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.
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
- Canada CPP 2026 figures (accessed May 3, 2026)
-
Canada Revenue Agency
(accessed Mar 23, 2026)
2025 federal brackets - Canada Revenue Agency 2026 indexation adjustment (accessed May 3, 2026)
- CRA T4127 2026 payroll formulas (accessed May 3, 2026)
-
PwC Canada - Corporate
(accessed Mar 23, 2026)
Federal CIT rate 15%, CCPC 9% -
PwC Canada - Individual
(accessed Mar 23, 2026)
Federal PIT brackets
🔗 RELATED
🧭 CONTINUE EXPLORING CANADA