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Canada vs Luxembourg: tax rates compared
Canada's income tax rate is 7.7pp higher than Luxembourg's (53.5% vs 45.8%). 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 | LU | Difference |
|---|---|---|---|
| Income Tax | 53.5% | 45.8% | CA +7.7 pp |
| Corporate Tax | 26% | 23.9% | CA +2.1 pp |
| VAT | 5% | 17% | LU +12 pp |
| Capital Gains Tax | 27.4% | 0% | CA +27.4 pplargest gap |
| Crypto Tax | 27.4% | 0% | CA +27.4 pp |
| 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 |
| Luxembourg | 45.8% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +7.7 pp | Canada higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 26% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Luxembourg | 23.9% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +2.1 pp | Canada higher |
Canada's corporate tax rate is 2.1pp higher than Luxembourg's (26% vs 23.9%). 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 |
| Luxembourg | 17% | Source: PWC Worldwide Tax Summaries — Luxembourg (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | −12 pp | Luxembourg higher |
Luxembourg's VAT rate is 12pp higher than Canada's (17% vs 5%). The 181-country average is 15%: Canada sits below it, Luxembourg sits above 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 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Income determination) · as of 2026-01-13 |
| Difference | +27.4 pp | Canada higher |
Canada's capital gains tax rate is 27.4pp higher than Luxembourg's (27.4% vs 0%). The 175-country average is 10.3%: Canada sits above it, Luxembourg sits below 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 |
| Luxembourg | 0% | Source: Luxembourg Direct Tax Administration (Administration des contributions directes) — Circular L.I.R. n° 14/5 – 99/3 – 99bis/3 (26 July 2018), "Monnaies virtuelles" · as of 2018-07-26 |
| Difference | +27.4 pp | Canada higher |
Canada's crypto tax rate is 27.4pp higher than Luxembourg's (27.4% vs 0%). The 88-country average is 13%: Canada sits above it, Luxembourg sits below it. Canada's figure is dated 2023-12-13 and Luxembourg's 2018-07-26, 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 |
| Luxembourg | 0% | Source: PWC Worldwide Tax Summaries — Luxembourg (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Canada's wealth tax rate is identical to Luxembourg's — both sit at 0%. The 193-country average is 0.1%: both sit below it.