Corporate tax rates
Canadian-controlled private corporations pay the lower small business rate on active business income up to the business limit. Other income is taxed at the general rate.
View saved pagesTax year
2025 tax year
Net tax rates on business income
Federal rates shown are after the provincial abatement. Combined rates add the federal and provincial rates.
| Jurisdiction | Small business rate | General rate | Business limit | Combined small business (with federal) | Combined general (with federal) |
|---|---|---|---|---|---|
| Federal | 9% | 15% | $500,000 | — | — |
| Alberta Your province | 2% | 8% | $500,000 | 11% | 23% |
| British Columbia Your province | 2% | 12% | $500,000 | 11% | 27% |
| Manitoba Your province | 0% | 12% | $500,000 | 9% | 27% |
| New Brunswick Your province | 2.5% | 14% | $500,000 | 11.5% | 29% |
| Newfoundland and Labrador Your province | 2.5% | 15% | $500,000 | 11.5% | 30% |
| Nova Scotia Your province | 1.5% | 14% | $700,000 | 10.5% | 29% |
| Northwest Territories Your province | 2% | 11.5% | $500,000 | 11% | 26.5% |
| Nunavut Your province | 3% | 12% | $500,000 | 12% | 27% |
| Ontario Your province | 3.2% | 11.5% | $500,000 | 12.2% | 26.5% |
| Prince Edward Island Your province | 1% | 15% | $600,000 | 10% | 30% |
| Quebec Your province | 3.2% | 11.5% | $500,000 | 12.2% | 26.5% |
| Saskatchewan Your province | 1% | 12% | $600,000 | 10% | 27% |
| Yukon Your province | 0% | 12% | $500,000 | 9% | 27% |
Sources
- CRA: Corporation tax rates (federal rates; provincial and territorial lower and higher rates and business limits, except Quebec and Alberta) · Checked October 9, 2026
- CRA: What's new for corporations (2025 and 2026 provincial and territorial changes) · Checked October 9, 2026
- CRA: T4012 T2 Corporation – Income Tax Guide, chapter 4 (line 410 business limit, $500,000) · Checked October 9, 2026
- CRA: Nova Scotia – Provincial corporation tax · Checked October 9, 2026
- CRA: Prince Edward Island – Provincial corporation tax · Checked October 9, 2026
- CRA: New Brunswick – Provincial corporation tax · Checked October 9, 2026
- Government of Alberta: Tax, levy, and prescribed interest rates (corporate income tax rates, current since July 1, 2020) · Checked October 9, 2026
- Revenu Québec: Guide de la déclaration de revenus des sociétés (CO-17.G), 4.4.3.11 Taux d'imposition · Checked October 9, 2026
Notes
- Corporate: Rates are those in effect on December 31, 2025.
- Corporate: Nova Scotia: lower rate cut from 2.5% to 1.5% and business limit raised from $500,000 to $700,000, effective April 1, 2025 (CRA). A calendar-2025 tax year is prorated by days.
- Corporate: Prince Edward Island: higher rate cut from 16% to 15% and business limit raised from $500,000 to $600,000, effective July 1, 2025 (CRA). A calendar-2025 tax year is prorated by days. The CRA PEI page (modified 2025-05-21) still shows 16%; the CRA rates table and What's new show the change.
- Corporate: Quebec: general rate 11.5%; small business deduction 8.3%, giving 3.2% on eligible income, for 2022 and later calendar years (Revenu Québec CO-17.G, table 5).
- Corporate: Federal: 38% basic Part I rate, 28% after the 10% federal abatement, 15% net after the general tax reduction; 9% net for CCPC income eligible for the small business deduction (CRA). Provincial rates are added to the federal rate.
- Corporate: Provincial smallBusinessRate is the lower rate on income eligible for the federal small business deduction (up to the provincial business limit); generalRate is the higher rate on all other income.
- Corporate: Where a rate or business limit changes during a corporation's tax year, the CRA prorates by the number of days each rate is in effect (CRA Dual tax rates). Quebec instead applies weighted rates for non-calendar years, and its 2026 change applies by taxation-year start date (see below).
- Corporate: Alberta and Quebec do not have corporation tax collection agreements with the CRA; their rates come from alberta.ca and Revenu Québec.
2026 tax year
Net tax rates on business income
Federal rates shown are after the provincial abatement. Combined rates add the federal and provincial rates.
| Jurisdiction | Small business rate | General rate | Business limit | Combined small business (with federal) | Combined general (with federal) |
|---|---|---|---|---|---|
| Federal | 9% | 15% | $500,000 | — | — |
| Alberta Your province | 2% | 8% | $500,000 | 11% | 23% |
| British Columbia Your province | 2% | 12% | $500,000 | 11% | 27% |
| Manitoba Your province | 0% | 12% | $500,000 | 9% | 27% |
| New Brunswick Your province | 2.5% | 14% | $500,000 | 11.5% | 29% |
| Newfoundland and Labrador Your province | 2% | 15% | $500,000 | 11% | 30% |
| Nova Scotia Your province | 1.5% | 14% | $700,000 | 10.5% | 29% |
| Northwest Territories Your province | 2% | 11.5% | $500,000 | 11% | 26.5% |
| Nunavut Your province | 3% | 12% | $500,000 | 12% | 27% |
| Ontario Your province | 2.2% | 11.5% | $500,000 | 11.2% | 26.5% |
| Prince Edward Island Your province | 1% | 15% | $600,000 | 10% | 30% |
| Quebec Your province | 2.2% | 11.5% | $500,000 | 11.2% | 26.5% |
| Saskatchewan Your province | 1% | 12% | $600,000 | 10% | 27% |
| Yukon Your province | 0% | 12% | $500,000 | 9% | 27% |
Sources
- CRA: Corporation tax rates (federal rates; provincial and territorial lower and higher rates and business limits, except Quebec and Alberta) · Checked October 9, 2026
- CRA: What's new for corporations (2025 and 2026 provincial and territorial changes) · Checked October 9, 2026
- CRA: T4012 T2 Corporation – Income Tax Guide, chapter 4 (line 410 business limit, $500,000) · Checked October 9, 2026
- CRA: Newfoundland and Labrador – Provincial corporation tax · Checked October 9, 2026
- CRA: Ontario – Provincial corporation tax · Checked October 9, 2026
- CRA: Nova Scotia – Provincial corporation tax · Checked October 9, 2026
- CRA: New Brunswick – Provincial corporation tax · Checked October 9, 2026
- Government of Alberta: Tax, levy, and prescribed interest rates (corporate income tax rates, current since July 1, 2020) · Checked October 9, 2026
- Revenu Québec: Increase in the Small Business Deduction Rate (May 4, 2026) · Checked October 9, 2026
- Revenu Québec: Guide de la déclaration de revenus des sociétés (CO-17.G), 4.4.3.11 Taux d'imposition · Checked October 9, 2026
Notes
- Corporate: Rates are those in effect on 2026-10-09 (the date checked): CRA's corporation tax rates table, updated for the changes CRA lists under '2026 – Provinces and territories' on What's new for corporations (page modified 2026-06-12). No other provincial or territorial rate or business limit change is listed there for 2026. The CRA rates table itself (modified 2025-05-30) and the CRA Newfoundland and Labrador (modified 2026-05-13) and Ontario (modified 2026-04-22) pages still show the old lower rates (2.5% and 3.2%) and describe the cuts as announced.
- Corporate: Newfoundland and Labrador: lower rate cut from 2.5% to 2.0% retroactive to January 1, 2026 (2026-04-29 budget); scheduled to fall to 1.5% on January 1, 2027, and 1% on January 1, 2028 (CRA).
- Corporate: Ontario: lower rate cut from 3.2% to 2.2% effective July 1, 2026 (2026-03-26 budget, CRA). A calendar-2026 tax year is prorated by days (3.2% before July 1, 2.2% from July 1).
- Corporate: Quebec: for taxation years beginning after April 29, 2026, the small business deduction rises from 8.3% to 9.3%, cutting the rate on eligible income from 3.2% to 2.2% (Revenu Québec). The 2.2% recorded applies to taxation years that begin now; a taxation year that began on or before April 29, 2026 (e.g. a calendar-2026 year) still uses 3.2% for the whole year. The general rate stays 11.5%.
- Corporate: Nova Scotia (lower rate 1.5%, limit $700,000 since April 1, 2025) and Prince Edward Island (higher rate 15%, limit $600,000 since July 1, 2025) changes are in effect for all of 2026.
- Corporate: Federal: 38% basic Part I rate, 28% after the 10% federal abatement, 15% net after the general tax reduction; 9% net for CCPC income eligible for the small business deduction (CRA). Provincial rates are added to the federal rate.
- Corporate: Provincial smallBusinessRate is the lower rate on income eligible for the federal small business deduction (up to the provincial business limit); generalRate is the higher rate on all other income.
- Corporate: Where a rate or business limit changes during a corporation's tax year, the CRA prorates by the number of days each rate is in effect (CRA Dual tax rates). Quebec instead applies weighted rates for non-calendar years, and its 2026 change applies by taxation-year start date (see below).
- Corporate: Alberta and Quebec do not have corporation tax collection agreements with the CRA; their rates come from alberta.ca and Revenu Québec.