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Canada vs Sri Lanka: tax rates compared

Canada has an income tax rate of 53.5%, 17.5pp above Sri Lanka's 36%. 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

0102030405060Income36%53.5%Corporate26%30%VAT5%18%Capital Gains0%27.4%Wealth Tax0%
five shared taxes, side by side
Tax CA LKDifference
Income Tax53.5%36%CA +17.5 pp
Corporate Tax26%30%LK +4 pp
VAT5%18%LK +13 pp
Capital Gains Tax27.4%0%CA +27.4 pplargest gap
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Canada53.5%Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01
Sri Lanka36%Source: Inland Revenue Department, Sri Lanka — Tax Chart, Year of Assessment 2025/2026 · as of 2025-08-28
Difference+17.5 ppCanada higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Canada26%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Sri Lanka30%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference−4 ppSri Lanka higher

Sri Lanka has a corporate tax rate of 30%, 4pp above Canada's 26%. The 201-country average is 22.6%: both sit above it.

VAT

VAT, side by side
CountryRateSource
Canada5%Source: PWC Worldwide Tax Summaries — Canada (Corporate, Other taxes) · as of 2026-06-12
Sri Lanka18%Source: Sri Lanka Inland Revenue Department — Value Added Tax (VAT) · as of 2024-01-01
Difference−13 ppSri Lanka higher

Sri Lanka has a VAT rate of 18%, 13pp above Canada's 5%. The 181-country average is 15%: Canada sits below it, Sri Lanka sits above it. Canada's figure is dated 2026-06-12 and Sri Lanka's 2024-01-01, so the two rates come from different data vintages.

Capital Gains Tax

Capital Gains Tax, side by side
CountryRateSource
Canada27.4%Source: PWC Worldwide Tax Summaries — Canada (Individual, Taxes on personal income) · as of 2026-06-12
Sri Lanka0%Source: Inland Revenue Department, Sri Lanka — Capital Gain Tax (CGT) · as of 2025-11-19
Difference+27.4 ppCanada higher

Canada has a capital gains tax rate of 27.4%, 27.4pp above Sri Lanka's 0%. The 175-country average is 10.3%: Canada sits above it, Sri Lanka sits below it. Canada's figure is dated 2026-06-12 and Sri Lanka's 2025-11-19, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Canada0%Source: PWC Worldwide Tax Summaries — Canada (Individual, Other taxes) · as of 2026-06-12
Sri Lanka0%Source: Sri Lanka Inland Revenue Department — Acts of Parliament (tax legislation listing) · as of 2026-07-18
Difference0 ppdisplayed rates match

Canada and Sri Lanka share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.

Not covered for both countries yet: Crypto Tax.