WorldTax Compareโ† All Comparisons

Panama vs Canada
Tax Rate Comparison

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

๐Ÿ‡ต๐Ÿ‡ฆ Panama
vs
๐Ÿ‡จ๐Ÿ‡ฆ Canada
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
0โ€“25%
Territorial system; no plans to change
No change
15โ€“33%
Federal brackets; new govt may revisit top rates
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7%
7% maintained
No change
5โ€“15%
GST/HST normalized after holiday period
No change
Corporate Tax Rate
Corporate Tax Rate
25%
25% standard; Panama removed from grey lists
No change
15%
15% federal; Global Minimum Tax active
No change
Capital Gains Tax
Capital Gains Tax
10%
10% CGT maintained
No change
~33.3%
2/3 inclusion rate maintained
No change
Social Security & Payroll
Social Security / Payroll
~22.1%
CSS pension reform implementation
No change
~12.3%
CPP contribution rates stabilizing
No change
State, Regional & Local Taxes

๐Ÿ‡ต๐Ÿ‡ฆ Panama โ€” Municipal & Corregimiento Taxes

Panama's 10 provinces and 81 districts have municipalities that levy commercial licence fees (Tasa Unica), property tax (impuesto de inmuebles at 0%โ€“2.1%), and service fees. Panama City has the highest commercial licence fees. Panama uses a territorial tax system โ€” income earned outside Panama is not taxed. This has made Panama a significant financial and trading hub. The Colรณn Free Zone is the world's second largest free trade zone. Panama is working to exit FATF grey lists and improve tax transparency.

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.

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.

Panama vs Canada: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡จ๐Ÿ‡ฆ Canada has a higher top income tax rate (0โ€“25% vs 15โ€“33%). ๐Ÿ‡ต๐Ÿ‡ฆ Panama is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Canada has a higher consumption tax (7% vs 5โ€“15%).

๐Ÿข Corporate Tax: ๐Ÿ‡จ๐Ÿ‡ฆ Canada offers a lower corporate rate (15% vs 25%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ฆ Panama taxes investment gains at a lower rate (10% vs 33.3%), benefiting investors.

Related Comparisons

๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡จ๐Ÿ‡ณ ChinaTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡บ๐Ÿ‡ธ United StatesTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ซ๐Ÿ‡ท FranceTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ฉ๐Ÿ‡ช GermanyTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ฎ๐Ÿ‡ณ IndiaTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ฏ๐Ÿ‡ต JapanTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ฌ๐Ÿ‡ง United KingdomTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ฆ๐Ÿ‡บ AustraliaTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ง๐Ÿ‡ท BrazilTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ฎ๐Ÿ‡น ItalyTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ณ๐Ÿ‡ฑ NetherlandsTax comparison๐Ÿ‡ต๐Ÿ‡ฆ Panama vs ๐Ÿ‡ฐ๐Ÿ‡ท South KoreaTax comparison