Americas · CAD
Canada
Reviewed 2026-06-21
Top income tax
33%
Self-employed SS
Yes
VAT
5%
Capital gains
27%
Exit tax
Yes
Nomad visa
No
47
/ 100
Tax efficiency40
Ease to enter55
Ease to exit36
Cost of living66
Internet41
English100
Canada taxes residents on worldwide income through a progressive federal system topping out at 33%, with provinces adding their own income tax so combined top marginal rates reach roughly 45% to 55%. There are no wealth, inheritance, or gift taxes, but leaving the country triggers a departure tax through deemed disposition of most assets, and self-employed people must fund both halves of the Canada Pension Plan. For a solopreneur it offers a stable, English-speaking base with a low federal GST of 5% layered with provincial sales taxes, though there is no dedicated digital nomad or self-employed immigration route after the 2025 program suspensions.
Personal income tax
Income tax structureProgressive
Top income tax rate33%
Entry income tax rate14%
Top rate threshold$188,500
Taxation basisWorldwide
Local/state income taxYes
Social security
Self-employed social securityYes
Employee SS rate5.95%
Employer SS rate5.95%
Indirect & other taxes
VAT standard rate5%
Capital gains rate27%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxYes
Exit tax triggerCeasing Canadian tax residency triggers a deemed disposition of most property at fair market value, taxing accrued unrealized gains (payment can be deferred via election); Canadian real estate, registered accounts and pensions are excluded.
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate15%
WHT on dividends25%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaNo
Entrepreneur visaNo
Ease of setup4 / 5
Lifestyle
Cost of living index63
Internet speed180 Mbps
English proficiencyHigh
Civil liberties97
Sources
- PwC Worldwide Tax Summaries — Canada Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Canada Individual: Other taxes (CPP/EI, GST/HST, wealth/inheritance)
- PwC Worldwide Tax Summaries — Canada Corporate: Taxes on corporate income
- Canada Revenue Agency — Dispositions of property for emigrants of Canada (departure tax)
- Canada Revenue Agency — Canadian income tax rates for individuals
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.