WorldTax CompareAll Comparisons

Paraguay vs Canada
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇨🇦 Canada
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
8–10%
10% top; competitive positioning
No change
15–33%
Federal brackets; new govt may revisit top rates
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
5–15%
GST/HST normalized after holiday period
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
15%
15% federal; Global Minimum Tax active
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
~33.3%
2/3 inclusion rate maintained
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~12.3%
CPP contribution rates stabilizing
No change
State, Regional & Local Taxes

🇵🇾 ParaguayMunicipal & Departmental Taxes

Paraguay's 17 departments and 254 municipalities levy the Impuesto Inmobiliario (property tax at 1% of assessed value), commercial licence fees (patente comercial), and vehicle registration fees. Asunción has the highest commercial licence fees. The Subsecretaría de Estado de Tributación (SET) administers national taxes. Paraguay has one of Latin America's lowest tax burdens (~12% of GDP) and has used flat low rates to attract foreign residents (MADES visa) and financial activity. No wealth tax exists.

🇨🇦 CanadaProvincial Income & Sales Taxes

Canada's 10 provinces each levy their own income tax (4%–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.

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

Paraguay vs Canada: Key Tax Differences (2026)

💰 Income Tax: 🇨🇦 Canada has a higher top income tax rate (8–10% vs 15–33%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Canada has a higher consumption tax (10% vs 5–15%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 15%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 33.3%), benefiting investors.

Related Comparisons

🇵🇾 Paraguay vs 🇦🇷 ArgentinaTax comparison🇵🇾 Paraguay vs 🇧🇴 BoliviaTax comparison🇵🇾 Paraguay vs 🇧🇷 BrazilTax comparison🇵🇾 Paraguay vs 🇨🇱 ChileTax comparison🇵🇾 Paraguay vs 🇨🇴 ColombiaTax comparison🇵🇾 Paraguay vs 🇪🇨 EcuadorTax comparison🇵🇾 Paraguay vs 🇲🇽 MexicoTax comparison🇵🇾 Paraguay vs 🇵🇪 PeruTax comparison🇵🇾 Paraguay vs 🇺🇾 UruguayTax comparison🇵🇾 Paraguay vs 🇨🇳 ChinaTax comparison🇵🇾 Paraguay vs 🇺🇸 United StatesTax comparison🇵🇾 Paraguay vs 🇫🇷 FranceTax comparison
All 🇵🇾 Paraguay comparisons →All 🇨🇦 Canada comparisons →