About the Canada Corporate Tax Calculator
This Canada corporate tax calculator estimates the income tax a corporation pays on active business income in every province and territory except Quebec. Choose the province, enter the year’s active business income, and say whether the company is a Canadian-controlled private corporation (CCPC). It applies the federal small business rate of 9% and the provincial lower rate up to the business limit, and the federal general rate of 15% plus the provincial higher rate above it.
It is built for incorporated professionals, small business owners and their accountants who want a quick estimate of corporate tax before planning salary and dividends, and for students learning how the small business deduction (SBD) works. A breakdown table shows exactly how much income is taxed at each rate.
Rates are the federal, provincial and territorial rates published by the Canada Revenue Agency and Alberta for 2026 tax years, including Nova Scotia’s 1.5% small business rate and $700,000 limit and Prince Edward Island’s 15% general rate and $600,000 limit, both in effect since 2025. The business limit is shared among associated corporations and is ground down when taxable capital exceeds $10 million or passive investment income exceeds $50,000; enter your reduced federal limit and the provincial limit is reduced in the same proportion (accurate for sharing among associated companies; some provinces do not apply the federal passive-income grind, so check provincial rules in that case). Investment income, refundable taxes and credits are not modelled.
With the default inputs, the total corporate income tax is $87,500.00. Change any value above to recalculate instantly.
How to use the canada corporate tax calculator
- 1Choose the province or territory where the corporation earns its income.
- 2Enter the year’s active business income after deductions.
- 3Leave CCPC on if the company is Canadian-controlled and private.
- 4Reduce the business limit if you share it with associated companies or have a grind.
- 5Review federal, provincial and total tax and the rate-band table.
Formula and method
The federal basic rate is 38%, reduced to 28% by the 10% federal abatement for income earned in a province or territory. The 13% general rate reduction brings most income to 15%, while a CCPC’s active business income up to the business limit qualifies for the 19% small business deduction instead, leaving 9%. Each province and territory then adds its own lower rate on income up to its business limit and its higher rate on the rest.
The business limit is $500,000 federally (more in Nova Scotia, Prince Edward Island and Saskatchewan provincially) and must be shared by associated corporations. It shrinks on a straight line as taxable capital rises from $10 million to $50 million, and as adjusted aggregate investment income rises from $50,000 to $150,000. The calculator scales the provincial limit by the same fraction as the federal limit you enter; some provinces do not follow every federal grind, so check provincial rules if your limit is reduced.
- ABI
- Active business income (taxable)
- BL
- Federal business limit available (max $500,000)
- PBL
- Provincial business limit after scaling
Worked examples
Ontario CCPC earning $600,000
Federally, $500,000 is taxed at 9% ($45,000) and $100,000 at 15% ($15,000). Ontario charges 3.2% on $500,000 ($16,000) and 11.5% on $100,000 ($11,500). Total tax is $87,500, an effective rate of about 14.6%.
British Columbia CCPC earning $300,000
All $300,000 is under the business limit, so it is taxed at the combined small business rate of 11% (9% federal + 2% BC), for $33,000 of tax.
Nova Scotia CCPC earning $700,000
Federal tax is 9% on $500,000 plus 15% on $200,000 = $75,000. Nova Scotia’s $700,000 limit means all income gets its 1.5% rate, adding $10,500.
Alberta public corporation earning $2 million
A non-CCPC cannot claim the small business deduction, so all income is taxed at 15% federally and 8% in Alberta — a combined 23%, or $460,000.
Ontario CCPC sharing the limit with an associated company
The company and an associated corporation agree to split the $500,000 business limit equally, so each has $250,000. Federal tax is 9% on $250,000 plus 15% on $150,000 = $45,000, and Ontario adds 3.2% on $250,000 plus 11.5% on $150,000 = $25,250.
Frequently asked questions
What is the small business tax rate in Canada?+
The federal small business rate is 9% on the first $500,000 of active business income earned by a CCPC. Adding the provincial lower rate gives combined rates from 9% (Manitoba and Yukon) to 12.2% (Ontario) on income up to the business limit.
What is the general corporate tax rate in Canada?+
The net federal general rate is 15% after the 10% provincial abatement and 13% general rate reduction. With provincial higher rates of 8% to 15%, combined general rates range from 23% in Alberta to 30% in Newfoundland and Labrador and Prince Edward Island.
Who qualifies for the small business deduction?+
Canadian-controlled private corporations earning active business income in Canada. The $500,000 business limit is shared among associated corporations and is reduced when taxable capital exceeds $10 million or passive investment income exceeds $50,000, reaching zero at $150,000 of passive income.
Why is Quebec not included?+
Quebec administers its own corporate income tax through Revenu Québec, and its small business deduction depends on extra conditions such as hours worked by employees. Quebec corporations still pay the federal tax shown here, but the provincial portion must be calculated separately.
How is investment income in a corporation taxed?+
Passive investment income of a CCPC is taxed at much higher rates (about 38.67% federally before refunds), part of which is refundable when the company pays taxable dividends. This calculator covers only active business income.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.