Compare countries
Canada vs the US: tax compared
Rates checked 12 October 2026
The short answer
Canada's headline personal income tax rate is 54.8% and the US's is 37%. Company tax is 26.5% in Canada and 21% in the US. Both figures come from each country's official tax guidance, checked on 12 October 2026 and 2 October 2026.
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Side by side.
- Personal income tax
- 54.8%Top combined, Newfoundland and Labrador · Ontario 53.53% · federal top 33%
- 37%Top federal rate, progressive
- Company tax
- 26.5%Federal 15% plus Ontario 11.5% · 23% to 30% combined by province · 9% federal small business rate
- 21%
- Special tax regime
- No
- No
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What the headline misses.
Regional and local taxes, social security, treaty relief and each country's residency test decide what you actually pay. The headline rate is where the comparison starts, not where it ends.
03Questions
What people ask.
Straight answers, from the figures above.
On the headline rate, the US (37%) is lower than Canada (54.8%). Local and regional taxes, social security and any special regime can change what you actually pay, so compare your own income before you decide.
On the headline rate, the US (21%) is lower than Canada (26.5%). Exemptions, small-profit rates and where the company is managed from change the real figure.
From each country's official tax guidance, linked on this page and checked on 12 October 2026 and 2 October 2026. Heed rechecks its rates on a rolling schedule and as soon as an official page changes.
No. Heed is information, not advice. The headline rate is where a comparison starts; a qualified adviser in each country should confirm your position.
Rules move. Heed watches both.
Heed follows Canada and the US from their official sources and tells you when a rule that affects you changes, and the Scenario Planner runs your own income through both.
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