Canada’s personal income tax system as well as its taxes on capital gains and dividends are weighing on the country’s tax competitiveness, according to a new study that ranks Canada 15th among 38 countries.
The Tax Foundation’s Centre for Global Tax Policy released its 2026 International Tax Competitiveness Index on Oct. 19, giving Canada an overall score of 72.2, down slightly from 72.3 in 2025, when it also placed 15th.
Canada ranked 28th in the index’s individual taxes category, which covers taxes on wages, capital gains, and dividends. Its taxes on capital gains and dividends ranked 34th among the 38 countries.
The index evaluates more than 40 variables measuring tax rates and how tax systems are structured, with an emphasis on competitiveness and neutrality….