ARTICLE · 29 MAY 2019

Canadian Tax Rates: How Do We Compare?

O'Sullivan Estate Lawyers LLP

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Now that the flurry of another tax season has come and gone, and we can put tax return preparation to the side until next year, its seems timely to consider in a dispassionate way how Canadian tax rates stack up against other countries, in particular the U.S.. Do we pay too much tax compared to other countries?

CanadaTax

Margaret O'Sullivan

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Now that the flurry of another tax season has come and gone, and we can put tax return preparation to the side until next year, its seems timely to consider in a dispassionate way how Canadian tax rates stack up against other countries, in particular the U.S.. Do we pay too much tax compared to other countries? A recent report by The Fraser Institute released on March 14, 2019 sets out the facts based on 2017 rates.¹

On a worldwide scale, we are near the top when it comes to the rate of tax we pay. Out of 34 OECD countries, in 2017 Canada had the seventh highest combined tax rate at 53.53%, while Sweden topped the list at 57.12%, followed by Portugal, Japan, Denmark, France and Greece. Australia at 49% ranked thirteenth and the United Kingdom at 45% ranked twentieth. Among the Canadian provinces, the highest combined top marginal rates are:

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