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)
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
Canada Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Canada Value-Added Tax (VAT)
General VAT Rate:
5% - 15%
Learn More
Canada Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
Half of the capital gains are considered as taxable capital gains, recorded as company income and taxed at the regular tax rate.
Canada Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
23.74
Composite Effective Marginal Tax Rate:
13.74
Additional info
Quick Navigation
TKEG Expat Canada Corporate Tax Guide
Canada Corporate Income Tax (CIT)
Canada Personal Income Tax (PIT)
Canada Goods and Services Tax (GST)
Canada Withholding Tax (WHT)
Personal Income Tax
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.
References
https://taxsummaries.pwc.com/canada/corporate/taxes-on-corporate-income
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.
References
https://taxsummaries.pwc.com/canada/individual/taxes-on-personal-income
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.
References
https://taxsummaries.pwc.com/canada/corporate/other-taxes
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