Canada vs United States
Corporate Tax Comparison
Time of Update: Canada: 4/04/2026 / United States: 4/04/2026
Compare Canada and United States corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Canada vs United States Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Canada
United States
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
General CIT Rate:
Federal corporate income tax: 21%. State CIT ranges from 1% to 10% (although some states do not impose CIT) and is deductible from the federal CIT.
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Return Due Date:
1. April 15th (Federal income tax);
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Payment Due Date:
As of the 15th day of the 12th month of the tax year.
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
CIT Estimated Payment Due Date:
Throughout the year, four equal instalments of estimated tax should be paid on the 15th day of the fourth, sixth, and ninth months of the tax year, and on the 15th day of the first month of the following year (April 15, June 15, September 15, and January 15).
Withholding Tax (WHT)
Canada
United States
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
Resident Withholding Tax (Dividend/Interest/Royalty):
0/10/3
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
30/30/30
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Canada
United States
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.
General Capital Gain Tax Rate:
21% (aligned with the federal CIT rate for corporations)
Effective Tax Rate (ETR)
Canada
United States
Composite Effective Average Tax Rate:
23.74
Composite Effective Average Tax Rate:
22.69
Composite Effective Marginal Tax Rate:
13.74
Composite Effective Marginal Tax Rate:
7.03
