No, Canada is not the most taxed country in the world. While Canadian taxes are relatively high compared to the US, in 2023, Canada ranked 22nd out of 38 OECD countries with a tax-to-GDP ratio of 34.8%. Countries like Finland, Japan, Denmark, Austria, and Sweden have higher top personal income tax rates.
There isn't one single "highest tax paying country" as it depends on what's measured (income, corporate, total tax revenue), but countries like Denmark, Finland, Japan, and Ivory Coast (Côte d'Ivoire) consistently rank highest for top personal income tax rates, often exceeding 50-60%, while nations like Belgium can have the highest overall tax burden on labor (tax wedge) for average earners, with high social security. Nordic countries and some European nations generally have high income taxes, funding extensive social services.
Among the countries with the lowest tax rates in the world are Malta, Cyprus, Andorra, Montenegro and Singapore. Aside from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance.
This low-tax claim is at best misleading, if not outright deceptive. In reality, the U.S. is a high-tax country, with average U.S. tax rates on individuals, corporations, and investors higher than the average tax rates in the rest of the developed world.
Basic Groceries
It's a win for everyone that basic necessities like groceries are not taxed in Canada. These zero-rated items ensure that Canadians of all income levels can access the essentials without an added tax burden.
For example, if you're single and earn $1 million in taxable income, you'll fall into the highest tax bracket, which is currently 37%. This means that you'll pay 37% in federal income taxes on the portion of your income that exceeds the threshold for the highest tax bracket.
Canada ranked 20th¹ out of 38 OECD countries in terms of the tax-to-GDP ratio in 2023. In 2023, Canada had a tax-to- GDP ratio of 34.8% compared with the OECD average of 33.9%. In 2022, Canada was ranked 22nd out of the 38 OECD countries in terms of the tax-to-GDP ratio. 1.
Of course, the higher taxes Canadians pay aren't for nothing. Governments use that revenue to provide far more generous family and unemployment benefits than in the US, as well as things like subsidized post-secondary education and government-funded universal health care.
For a $70,000 income in Canada (using 2025 rates), you'll pay roughly $13,000 to $20,000 in total taxes (federal, provincial, CPP, EI), depending on your province, resulting in a take-home pay around $50,000-$59,000, with federal tax around 14.5% or 20.5% depending on the portion, plus provincial tax and deductions like CPP and EI.
Belgium, Norway, Spain, and Switzerland are the countries that raised revenue from net wealth taxes on individuals in 2019 with net wealth taxes accounting for 1.1% of overall tax revenues in Norway, 0.55% in Spain, and 3.6% in Switzerland for 2017.
Bezos owns billions in Amazon stock. Instead of selling it and paying taxes, he takes out loans using the stock as collateral. Loans are not considered taxable income, so he can use that money tax-free.
Unemployment compensation generally is taxable. Inheritances, gifts, cash rebates, alimony payments (for divorce decrees finalized after 2018), child support payments, most healthcare benefits, welfare payments, and money that is reimbursed from qualifying adoptions are deemed nontaxable by the IRS.
Most of the items sold in grocery and convenience stores are zero-rated basic groceries (that is, they are taxed at 0%). However, certain items sold in these stores are taxable. Click Taxable Groceries for details on how the the GST and the QST apply to basic groceries and other items.
How much you should have saved by age varies, but common benchmarks suggest aiming for 1x your salary by 30, 3x by 40, 6x by 50, and 8-10x by retirement (67), with slight variations depending on the financial expert, focusing on retirement savings as a percentage of your income for long-term goals like replacing income in retirement. Remember, these are guidelines; your personal goals, retirement age, and desired lifestyle heavily influence your actual target.