CA · AmericasPW · Oceania
Canada vs Palau: tax rates compared
Canada has an income tax rate of 53.5%, 41.5pp above Palau's 12%. The 200-country average is 28%: Canada sits above it, Palau sits below it. Canada's figure is dated 2025-01-01 and Palau's 2026-07-20, 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 | PW | Difference |
|---|---|---|---|
| Income Tax | 53.5% | 12% | CA +41.5 pplargest gap |
| VAT | 5% | 10% | PW +5 pp |
| Capital Gains Tax | 27.4% | 0% | CA +27.4 pp |
| 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 |
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Difference | +41.5 pp | Canada higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Canada | 5% | Source: PWC Worldwide Tax Summaries — Canada (Corporate, Other taxes) · as of 2026-06-12 |
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Difference | −5 pp | Palau higher |
Palau has a VAT rate of 10%, 5pp above Canada's 5%. The 181-country average is 15%: both sit below it. Canada's figure is dated 2026-06-12 and Palau's 2023-01-01, 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 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +27.4 pp | Canada higher |
Canada has a capital gains tax rate of 27.4%, 27.4pp above Palau's 0%. The 175-country average is 10.3%: Canada sits above it, Palau 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 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +27.4 pp | Canada higher |
Canada has a crypto tax rate of 27.4%, 27.4pp above Palau's 0%. The 88-country average is 13%: Canada sits above it, Palau sits below it. Canada's figure is dated 2023-12-13 and Palau's 2026-07-19, 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 |
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
Canada and Palau share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Corporate Tax.