Canada Withholding tax rates
Canada Withholding tax rates: no single figure applies. The 5 withholding taxes held run from 25%, cited to Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)), s.212(1): 'Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to the non-resident person as, on account or in lieu of payment of, or in satisfaction of' the listed heads (interest, dividends via s.212(2), rents and royalties, etc.), in force since 1 Jan 2008. Last checked against the official source on 10 Aug 2026.
Official source: Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)), s.212(1) · Last checked 2026-08-10 · source fingerprint
The Part XIII tax Canada levies on amounts paid or credited to non-residents - dividends, interest, rents and royalties, and related heads - at the domestic statutory rate before any tax-treaty relief. Imposed by Part XIII of the Income Tax Act (s.212 and following); administered by the CRA.
Compare withholding tax rates across all 10 North American countries →
| Current value | 25% across 5 withholding taxes — no single rate |
|---|---|
| In force from | 2008-01-01 |
| Official source | Income Tax Act (R.S.C. 1985, c. 1 (5th Supp.)), s.212(1): 'Every non-resident person shall pay an income tax of 25% on every amount that a person resident in Canada pays or credits, or is deemed by Part I to pay or credit, to the non-resident person as, on account or in lieu of payment of, or in satisfaction of' the listed heads (interest, dividends via s.212(2), rents and royalties, etc.) |
| Last verified | 2026-08-10 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
THERE IS NO SINGLE WITHHOLDING TAX RATE IN PRACTICE, WHICH IS WHY value IS NULL. Canada's Part XIII tax uses one headline statutory rate - 25% - across dividends, interest and royalties, but the interest head is hollowed out by statute: interest paid to an arm's-length lender that is not 'participating debt interest' bears NO Part XIII tax at all. A caller must name the payment type and its facts (arm's length or not, participating or not) and read withholding_rates rather than expecting one number to apply. ALL RATES ARE DOMESTIC STATUTORY RATES, BEFORE TREATY RELIEF. A Canadian tax treaty can reduce the 25%, commonly to 15%/5% for dividends and 10% or 0% for interest and royalties (the Canada-US treaty exempts most arm's-length interest and certain royalties entirely). We do NOT serve treaty rates: they are bilateral and applying one is a legal determination rather than a lookup. Part XIII is a FINAL tax on the gross amount, collected by the Canadian payer withholding at source (s.215). The 25% rate has stood for decades; the series effective_from of 2008-01-01 is the date the arm's-length interest exemption in its current form took effect (Budget 2007 amendment to s.212(1)(b)), the most recent structural change to these heads.
Get it programmatically
curl https://usaref.dev/v1/ca/withholding-tax
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://usaref.dev/v1/ca/withholding-tax/history?from=2020-01-01
# Provenance: curl https://usaref.dev/provenance/ca/withholding-taxOther Canada series: Policy Interest Rate · Statutory default interest (Interest Act) · Goods and Services Tax (GST) · VAT registration threshold · Federal Minimum Wage · General (Statutory) Holidays · Consumer Price Index (Inflation Rate) · Federal Corporate Income Tax Rate · Federal Personal Income Tax Rates · Statutory social-insurance contributions · Bank of Canada exchange rates
The same figure elsewhere: Costa Rica · Dominican Republic · El Salvador · Guatemala · Honduras · all 10