Canada has a federal corporate income tax rate of 15%, with provincial and regional rates ranging from 8% to 16%. Half of capital gains are considered taxable income and taxed at the regular rate. Tax installment payments are due on the last day of each month, with the final payment due two months after the end of the company's tax year. The CIT return is due six months after the end of the fiscal year. The general VAT rate ranges from 5-15%. Non-residents are subject to a 25% withholding tax on dividends, interest, and royalties, while residents do not have a withholding tax.
Canada Tax Brief
Time of Update 4/04/2026
Canada Corporate Income Tax (CIT)
Canada Withholding Tax (WHT)
Canada Value-Added Tax (VAT)
Canada Capital Gain Tax (CGT)
Canada Effective Tax Rate (ETR)
Composite Effective Marginal Tax Rate:
13.74
Additional info
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TKEG Expat™ (Test) Canada Corporate Tax Guide
1.
Canada Corporate Income Tax (CIT)
In Canada, the corporate income tax (CIT) rate includes a federal CIT of 15%, with additional provincial and territorial CITs ranging from 8% to 16%. The CIT return is due six months after the company's fiscal year-end, with the final payment generally due two months after the year-end. Estimated CIT payments are typically required monthly.
2.
Canada Personal Income Tax (PIT)
In Canada, the personal income tax (PIT) top federal rate is 33%, while provincial and territorial rates range from 11.5% to 21.8%, depending on the jurisdiction. The PIT return is due by April 30, though self-employed individuals have until June 15. The final payment for PIT is also due by April 30. If applicable, estimated payments are due on March 15, June 15, September 15, and December 15 each year.
3.
Canada Goods and Services Tax (GST)
The Federal Goods and Services Tax (GST) in Canada is a value-added tax applied at a rate of 5% on the supply of most goods and services. This tax applies at each level in the production and distribution process. However, some supplies are zero-rated, meaning they are taxed at 0%, or exempt. Zero-rated supplies include basic groceries, prescription drugs, and international transportation services, while exempt supplies cover most residential real estate, healthcare, and financial services. Businesses registered for GST must charge and remit GST on their sales and are entitled to claim input tax credits (ITCs) for GST paid on their business purchases, provided those expenses relate to taxable or zero-rated supplies. However, ITCs cannot be claimed for GST paid on expenses associated with exempt supplies.
4.
Canada Withholding Tax (WHT)
The withholding tax (WHT) rates for Canada apply differently to residents and non-residents. For residents, there is no applicable withholding tax (NA). For non-residents, the WHT rate is 25% on dividends, interest, and royalties. However, these rates may be reduced through tax treaties, and the WHT on most interest payments made to arm's-length non-residents can be reduced to 0%.
5.
Personal Income Tax
Headline PIT rate:
[ml][ul][li indent=0 align=left]Federal top rate: 33%. [/li][li indent=0 align=left]Provincial/territorial top rates range from 11.5% to 21.8%.[/li][/ul][/ml]
PIT return due date: 30 April
[ml][ul][li indent=0 align=left]Federal top rate: 33%. [/li][li indent=0 align=left]Provincial/territorial top rates range from 11.5% to 21.8%.[/li][/ul][/ml]
PIT return due date: 30 April
