Canada

Canada's Rankings
CategoryRankScore
Overall Rank2064.63
Corporate Taxes2355.34
Individual Taxes2750.55
Consumption Taxes881.46
Property Taxes2453.99
Crossborder Taxes1680.45

Canada ranks 20th overall on the 2021 International Tax Competitiveness Index, two spots worse than in 2020.


Strengths

  • Consumption taxes are low, and the associated compliance burden is near the average for OECD countries.
  • Canada allows businesses to immediately write off investments in machinery.
  • Canada does not levy wealth, estate, or inheritance taxes.

Weaknesses

  • The personal tax on dividends is 39.3 percent, well above the OECD average of 24.1 percent.
  • Canada taxes capital gains at a rate of 26.75 percent, while the OECD average is 19.1 percent.
  • The corporate rate of 26.2 percent is above average among OECD countries (22.9 percent).

Learn more about the tax system in Canada

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