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Canada vs United States
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡¨πŸ‡¦ Canada
vs
πŸ‡ΊπŸ‡Έ United States
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
15–33%
Federal brackets; new govt may revisit top rates
No change
10–37%
TCJA provisions extended; no sunset
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
5–15%
GST/HST normalized after holiday period
No change
0–11%
No federal sales tax; state avg ~6–9%
No change
Corporate Tax Rate
Corporate Tax Rate
15%
15% federal; Global Minimum Tax active
No change
21%
Federal flat; proposals to raise to 28% stalled
No change
Capital Gains Tax
Capital Gains Tax
~33.3%
2/3 inclusion rate maintained
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
Social Security & Payroll
Social Security / Payroll
~12.3%
CPP contribution rates stabilizing
No change
~15.3%
SS wage base ~$180,000 est. 2026
No change
State, Regional & Local Taxes

πŸ‡¨πŸ‡¦ Canada β€” Provincial Income & Sales Taxes

Canada's 10 provinces each levy their own income tax (4%–25.75% top). Combined federal+provincial top rates exceed 50% in Quebec, Nova Scotia, and Ontario. Quebec has its own QPP and QST (9.975%). Alberta has no provincial sales tax. HST replaces GST+PST in Atlantic provinces and Ontario. Property taxes are municipal.

πŸ‡ΊπŸ‡Έ United States β€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Canada vs United States: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΊπŸ‡Έ United States has a higher top income tax rate (15–33% vs 10–37%). πŸ‡¨πŸ‡¦ Canada is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Canada has a higher consumption tax (5–15% vs 0–11%).

🏒 Corporate Tax: πŸ‡¨πŸ‡¦ Canada offers a lower corporate rate (15% vs 21%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ΊπŸ‡Έ United States taxes investment gains at a lower rate (20% vs 33.3%), benefiting investors.

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