Canadian provinces maintain some of the most progressive tax systems in the OECD

PR Newswire
Today at 10:00am UTC

Canadian provinces maintain some of the most progressive tax systems in the OECD

Canada NewsWire

VANCOUVER, BC, Nov. 18, 2025 /CNW/ - Every Canadian province ranks in the top half of OECD jurisdictions, a group of high-income, industrialized countries, regarding tax progressivity, according to a new study published by the Fraser Institute, an independent non-partisan Canadian think-tank.

Tax progressivity refers to the degree to which the total share of the tax burden increases as an individual or family's income increases.

"Despite popular misperceptions, Canada actually has a more progressive tax system than most other high-income, industrialized countries around the world," said Grady Munro, policy analyst at the Fraser Institute and co-author of Measuring Tax Progressivity in High-Income Countries.

The study compares tax progressivity amongst 45 high-income jurisdictions in the OECD—29 countries, three federalist countries including only their high- and low-tax province or state, and all the Canadian provinces. The study uses a host of measures to gauge progressivity including reliance on personal income taxes and consumption taxes, tax rates, and thresholds.

Newfoundland and Labrador maintains the most progressive tax system in Canada and the second-most progressive system out of the 45 jurisdictions measured. Saskatchewan's tax system is the least progressive in Canada, yet it still ranks 17th-highest overall. In other words, all Canadian provinces rank in the top half of OECD jurisdictions for tax progressivity.

The remaining provinces rank between 6th-highest overall (Nova Scotia) and 16th-highest overall (Alberta), while California and Texas— the two American jurisdictions analyzed in this study—ranked first- and fifth-most progressive (respectively) out of 45 jurisdictions, indicating the U.S. tax system is even more progressive than Canada.

Crucially, and perhaps surprisingly to many, tax systems in Scandinavian countries such as Sweden (41st-high­est) and Norway (37th-highest) are among the least progressive.

"The evidence is clear—despite claims from certain groups, governments across Canada already maintain some of the most progressive tax systems in the industrialized world," said Jason Clemens, executive vice president at the Fraser Institute and co-author.

Follow the Fraser Institute on Twitter and Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute