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    Canada vs the US: tax compared

    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 8 November 2026.

    Face to face.

    Canada

    The US

    Personal income tax

    54.8%

    Top combined, Newfoundland and Labrador · Ontario 53.53% · federal top 33%

    Personal income tax

    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

    Company tax

    21%

    Special tax regime: No

    Official guidancechecked 8 November 2026

    Special tax regime: No

    Official guidancechecked 8 November 2026

    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.

    Questions

    What people ask.

    Straight answers, from the figures above.

    From each country's official tax guidance, linked on this page and checked on 8 November 2026. Heed rechecks its rates on a rolling schedule, and sooner when 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.

    Other countries compared.