Canada
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 20 | 64.63 |
| Corporate Taxes | 23 | 55.34 |
| Individual Taxes | 27 | 50.55 |
| Consumption Taxes | 8 | 81.46 |
| Property Taxes | 24 | 53.99 |
| Crossborder Taxes | 16 | 80.45 |
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