United States
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AmericasUnited States vs Canada Tax Comparison
Summary
4
🇺🇸 United States
0
Ties
3
🇨🇦 Canada
🇺🇸 United States has lower tax rates in more categories
Tax Rates Comparison
| Category | 🇺🇸United States | 🇨🇦Canada |
|---|---|---|
| Top Income Tax Rate | 37% | 33%Lower |
| Corporate Tax Rate | 21%Lower | 26.5% |
| VAT / Sales Tax | 0%Lower | 5% |
| Capital Gains Tax | 20%Lower | 26.76% |
| Employee Social Security | 7.65% | 7.2%Lower |
| Employer Social Security | 7.65%Lower | 7.7% |
| Self-Employed Social Security | 15.3% | 14.4%Lower |
Living Indicators
| Category | 🇺🇸United States | 🇨🇦Canada |
|---|---|---|
| Cost of Living Index | 72 | 68Lower |
| Quality of Life Index | 72Lower | 76 |
| Tax Treaties | 66Lower | 94 |
Income Tax Brackets
United States
Federal rates only. State taxes add 0-13.3% (California highest). No state tax in FL, TX, NV, WA, WY, SD, AK, NH, TN.
Canada
Federal rates. Provincial taxes add 4-25.75%. Combined top rate ranges from 44.5% (Nunavut) to 54.8% (Nova Scotia).
Special Tax Regimes
United States
Qualified Small Business Stock (QSBS)
Up to 100% exclusion of capital gains (up to $10M) on qualifying small business stock held 5+ years.
Foreign Earned Income Exclusion (FEIE)
Exclude up to $126,500 (2024) of foreign earned income if living abroad.
Canada
SR&ED Tax Credit
Investment tax credit of 15-35% for scientific research and experimental development expenditures.
Digital Nomad Visa
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.
Data last updated: United States (2024-01) · Canada (2024-01)