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Canada vs Japan: tax rates compared
Japan's income tax rate is 2.4pp higher than Canada's (55.9% vs 53.5%). The 200-country average is 28%: both sit above it.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CA | JP | Difference |
|---|---|---|---|
| Income Tax | 53.5% | 55.9% | JP +2.4 pp |
| Corporate Tax | 26% | 29.7% | JP +3.7 pp |
| VAT | 5% | 10% | JP +5 pp |
| Capital Gains Tax | 27.4% | 20.3% | CA +7.1 pp |
| Crypto Tax | 27.4% | 55% | JP +27.6 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 53.5% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Japan | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −2.4 pp | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 26% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Japan | 29.7% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −3.7 pp | Japan higher |
Japan's corporate tax rate is 3.7pp higher than Canada's (29.7% vs 26%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Canada | 5% | Source: PWC Worldwide Tax Summaries — Canada (Corporate, Other taxes) · as of 2026-06-12 |
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | −5 pp | Japan higher |
Japan's VAT rate is 5pp higher than Canada's (10% vs 5%). The 181-country average is 15%: both sit below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 27.4% | Source: PWC Worldwide Tax Summaries — Canada (Individual, Taxes on personal income) · as of 2026-06-12 |
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Difference | +7.1 pp | Canada higher |
Canada's capital gains tax rate is 7.1pp higher than Japan's (27.4% vs 20.3%). The 175-country average is 10.3%: both sit above it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 27.4% | Source: Canada Revenue Agency — Guide for cryptocurrency users and tax professionals · as of 2023-12-13 |
| Japan | 55% | Source: PWC Japan — Japan Tax Update: Overview of 2026 Tax Reform Proposals (December 2025) · as of 2025-12-19 |
| Difference | −27.6 pp | Japan higher |
Japan's crypto tax rate is 27.6pp higher than Canada's (55% vs 27.4%). The 88-country average is 13%: both sit above it. Canada's figure is dated 2023-12-13 and Japan's 2025-12-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 0% | Source: PWC Worldwide Tax Summaries — Canada (Individual, Other taxes) · as of 2026-06-12 |
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Canada's wealth tax rate is identical to Japan's — both sit at 0%. The 193-country average is 0.1%: both sit below it.