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Canada vs Nepal: tax rates compared
Between the two, Canada's income tax rate (53.5%) tops Nepal's (30%) by 23.5pp. The 200-country average is 28%: both sit above it. Canada's figure is dated 2025-01-01 and Nepal's 2026-01-02, so the two rates come from different data vintages.
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 | NP | Difference |
|---|---|---|---|
| Income Tax | 53.5% | 30% | CA +23.5 pplargest gap |
| Corporate Tax | 26% | 25% | CA +1 pp |
| VAT | 5% | 13% | NP +8 pp |
| Capital Gains Tax | 27.4% | 5% | CA +22.4 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 |
| Nepal | 30% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Schedule 1 (clause 1) · as of 2026-01-02 |
| Difference | +23.5 pp | Canada higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 26% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Nepal | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +1 pp | Canada higher |
Between the two, Canada's corporate tax rate (26%) tops Nepal's (25%) by 1pp. 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 |
| Nepal | 13% | Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2005-01-01 |
| Difference | −8 pp | Nepal higher |
Between the two, Nepal's VAT rate (13%) tops Canada's (5%) by 8pp. The 181-country average is 15%: both sit below it. Canada's figure is dated 2026-06-12 and Nepal's 2005-01-01, so the two rates come from different data vintages.
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 |
| Nepal | 5% | Source: Inland Revenue Department (Nepal) — Income Tax Act, 2058 (2002), as amended by Finance Act 2082, Section 95Ka(2)(a) · as of 2026-01-02 |
| Difference | +22.4 pp | Canada higher |
Between the two, Canada's capital gains tax rate (27.4%) tops Nepal's (5%) by 22.4pp. The 175-country average is 10.3%: Canada sits above it, Nepal sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Canada | 0% | Source: PWC Worldwide Tax Summaries — Canada (Individual, Other taxes) · as of 2026-06-12 |
| Nepal | 0% | Source: Inland Revenue Department, Nepal — official site (list of administered tax laws) · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Canada and Nepal both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.