background image
8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty Nil Generally, there is no federal or provincial capital duty in Canada. However, capital tax may be imposed on financial institutions in several provinces and by the federal government.
Payroll Tax 1.95% to 4.3% There is no payroll tax separately due in Canada by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees. However, payroll tax applies in the provinces of British Colombia, Manitoba, Quebec, Ontario, Newfoundland and Labrador, the Northwest Territories, and Nunavut. The maximum rates range from 1.95% to 4.3% of the total remuneration paid by an employer.
Social Security Employer Contribution 7.91% The employer contribution is equal to 7.91% of gross salary including employment insurance at 2.21% for 2022 (maintained from 2021) and government pension plan contributions at 5.7% for 2022 (5.45% for 2021). The general salary basis cap for employment insurance is CAD 60,300 for 2022 (CAD 56,300 for 2021), and the salary basis cap for pension contributions is CAD 61,400 for 2022 after reducing the basic exemption amount of CAD 3,500 (CAD 58,100 for 2021). The contributions in Quebec are higher for pension and lower for employment insurance, and also include a parental insurance plan contribution.
Social Security Employee Contribution 7.28% The employee contribution is equal to 7.28% of gross salary including employment insurance at 1.58% for 2022 (maintained from 2021) and government pension plan contributions at 5.7% for 2022 (5.45% for 2021). The general salary basis cap for employment insurance is CAD 60,300 for 2022 (CAD 56,300 for 2021), and the salary basis cap for pension contributions is CAD 61,400 for 2022 after reducing the basic exemption amount of CAD 3,500 (CAD 58,100 for 2021). The contributions in Quebec are higher for pension and lower for employment insurance, and also include a parental insurance plan contribution.
Property Tax Varies Property tax is levied by municipalities on the market value of the real property, and by provinces and territories on land outside a municipality. Rates vary by property type and location.
Transfer Tax 0.02% to 5% Registration fees are levied on the transfer of real property in all provinces and territories. The rates generally range from 0.02% to 5%. Additional taxes may be imposed at the municipal level, and when the buyer is a non-resident.
Stamp Duty Nil There is no stamp duty in Canada.
Excise Taxes Varies Excise taxes are levied on alcoholic beverages, tobacco products, petroleum products, vaping products (effective 1 October 2022), and automobiles.
Customs Duty Varies Customs duties are imposed on various goods imported into Canada.
Luxury Tax Varies Effective 1 September 2022, a luxury tax is levied on domestic sales, and importation into Canada of new motor vehicles and aircraft with a retail sale price of over CAD 100,000 and on boats and yachts with a retail sale price of over CAD 250,000. The luxury tax is levied at the lower of 10% of the total price, or 20% of the total price that exceeds the threshold. The tax will not be charged to sales or imports if the written sales agreement is entered into before 1 January 2022