Are stock market investment gains taxed higher in Canada or the U.S.? Would my Canadian capital gains be high enough to offset all of the taxes Stateside via credit?
Generally speaking, the capital gains tax rate is higher in Canada. The Canadian capital gains tax rate is 25%, whereas the US long-term rate is 20%. However, short-term capital gains (stocks held less than a 1 year prior to sale) are taxed at an individual’s marginal rate in the US, whereas in Canada the rate remains the same – 25%.