WorldTax Compareโ† All Comparisons

Canada vs Luxembourg
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡จ๐Ÿ‡ฆ Canada
vs
๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
15โ€“33%
Federal brackets; new govt may revisit top rates
No change
0โ€“42%
Tax reform package continuing; thresholds indexed
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
5โ€“15%
GST/HST normalized after holiday period
No change
3โ€“17%
Standard 17% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
15%
15% federal; Global Minimum Tax active
No change
~24.94%
Global minimum tax fully embedded in domestic law
No change
Capital Gains Tax
Capital Gains Tax
~33.3%
2/3 inclusion rate maintained
No change
0โ€“42%
No major reform
No change
Social Security & Payroll
Social Security / Payroll
~12.3%
CPP contribution rates stabilizing
No change
~27%
Pension reform discussions; contribution structure stable
No change
State, Regional & Local Taxes

๐Ÿ‡จ๐Ÿ‡ฆ Canada โ€” Provincial Income & Sales Taxes

Canada's 10 provinces each levy their own income tax (4%โ€“25.75% top). Combined federal+provincial top rates exceed 50% in Quebec, Nova Scotia, and Ontario. Quebec has its own QPP and QST (9.975%). Alberta has no provincial sales tax. HST replaces GST+PST in Atlantic provinces and Ontario. Property taxes are municipal.

๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg โ€” Municipal Business & Property Taxes

Luxembourg's 102 communes levy the Gewerbesteuer (business tax) on companies at rates set by each commune (base rate 3% + municipal multiplier 175%โ€“400% = effective 6โ€“10.5%), and communal income tax additionals on individuals. Luxembourg City has higher rates than rural communes. The combined corporate tax (national + municipal) ranges from ~24.9% to ~26.01%. Luxembourg is a major holding company and fund domicile jurisdiction with extensive tax treaty networks.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Canada vs Luxembourg: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฑ๐Ÿ‡บ Luxembourg has a higher top income tax rate (15โ€“33% vs 0โ€“42%). ๐Ÿ‡จ๐Ÿ‡ฆ Canada is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Luxembourg has a higher consumption tax (5โ€“15% vs 3โ€“17%).

๐Ÿข Corporate Tax: ๐Ÿ‡จ๐Ÿ‡ฆ Canada offers a lower corporate rate (15% vs 24.94%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡จ๐Ÿ‡ฆ Canada taxes investment gains at a lower rate (33.3% vs 42%), benefiting investors.

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