🇺🇸 United States vs 🇨🇦 Canada
Burden and rates
| United States | Canada | |
|---|---|---|
| Tax-to-GDP (latest) | 27.7% (2022) | 33.2% (2022) |
| Tax-to-GDP in 2000 | 28.3% | 34.7% |
| Headline PIT rate | 37 | Federal top rate: 33%. Provincial/territorial top rates range from 11.5% to 21.8%. |
| Headline CIT rate | Federal CIT: 21%. State CITs range from 1% to 12% (although some states impose no CIT) and are deductible expenses for federal CIT purposes. | Federal CIT: 15%. Provincial and territorial CITs range from 8% to 15% and are not deductible for federal CIT purposes. |
| Standard VAT rate | NA | Combined federal and provincial/territorial sales taxes range from 5% to 15%. |
| Individual CGT | 20 | Half of a capital gain constitutes a taxable capital gain, which is included in the individual's income and taxed at ordinary rates. |
| Inheritance tax | There is no inheritance tax. However, there is an estate tax with a top rate of 40%. | NA |
Headline rates as stated by PwC Worldwide Tax Summaries; tax-to-GDP from OECD Revenue Statistics (Global).
Enforcement powers
| United States | Canada | |
|---|---|---|
| Social media & open-web monitoring | Not yet assessed | Not yet assessed |
| AI & machine-learning risk scoring | Yes — documented practice Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation). | Yes — documented practice Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation). |
| Automated bulk data matching | Yes — documented practice Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | Yes — documented practice Self-reported to ISORA (International Survey on Revenue Administration), FY2022. |
| Digital platform reporting | Yes — statutory power Payment apps and online marketplaces must report user payment totals to the IRS on Form 1099-K. | Yes — statutory power Part XX of the Income Tax Act (in force 2024, based on the OECD model rules) requires digital platform operators to collect, verify and report seller information to the CRA annually. |
| Crypto-asset reporting | Yes — statutory power Brokers report digital-asset sale proceeds to the IRS on Form 1099-DA (first reports for 2025). | Partial / committed Canada is a signatory to the November 2023 CARF joint statement, committing to crypto-asset reporting with exchanges commencing by 2027. |
| Exit tax on individuals | Yes — statutory power An expatriation tax applies to covered US citizens who renounce citizenship and to long-term residents who end residency (IRC 877/877A). | Yes — statutory power Leaving Canada triggers a deemed disposition of most property at fair market value — the departure tax. |
| Citizenship-based taxation | Yes — statutory power The United States taxes citizens and resident aliens on worldwide income wherever in the world they live — near-unique citizenship-based taxation. | No — power absent Canada taxes worldwide income only while an individual is resident in Canada. |
| Controlled foreign company (CFC) rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Interest limitation rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Country-by-country reporting | Not yet assessed | Not yet assessed |
| Public naming of non-compliant taxpayers | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | Yes — statutory power Self-reported to ISORA (International Survey on Revenue Administration), FY2022. |
Statuses: Law = Yes — statutory power · Practice = Yes — documented practice · Partial = Partial / committed · No = No — power absent · No evidence = No evidence found · — = Not yet assessed. Full evidence quotes and sources are on each country page.