CA · AmericasMX · Americas
Canada vs Mexico: tax rates compared
Canada's income tax rate is 18.5pp higher than Mexico's (53.5% vs 35%). The 200-country average is 28%: both sit above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | CA | MX | Difference |
|---|---|---|---|
| Income Tax | 53.5% | 35% | CA +18.5 pplargest gap |
| Corporate Tax | 26% | 30% | MX +4 pp |
| VAT | 5% | 16% | MX +11 pp |
| Capital Gains Tax | 27.4% | 10% | CA +17.4 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 |
| Mexico | 35% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | +18.5 pp | Canada higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 26% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Mexico | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −4 pp | Mexico higher |
Mexico's corporate tax rate is 4pp higher than Canada's (30% 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 |
| Mexico | 16% | Source: PWC Worldwide Tax Summaries — Mexico (Corporate, Other taxes) · as of 2026-02-24 |
| Difference | −11 pp | Mexico higher |
Mexico's VAT rate is 11pp higher than Canada's (16% vs 5%). The 181-country average is 15%: Canada sits below it, Mexico 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 |
| Mexico | 10% | Source: PwC Worldwide Tax Summaries — Mexico (Individual, Income determination) · as of 2026-01-30 |
| Difference | +17.4 pp | Canada higher |
Canada's capital gains tax rate is 17.4pp higher than Mexico's (27.4% vs 10%). The 175-country average is 10.3%: Canada sits above it, Mexico sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 0% | Source: PWC Worldwide Tax Summaries — Canada (Individual, Other taxes) · as of 2026-06-12 |
| Mexico | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-02-24 |
| Difference | 0 pp | displayed rates match |
Canada's wealth tax rate is identical to Mexico's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.