Canadian corporate tax rates by province
Federal and provincial corporate income tax rates for 2026. The CCPC small business rate applies to the first $500,000 of active business income (the “business limit”); the general rate applies to everything else.
Updated June 2026. Sources: CRA, Department of Finance Canada, provincial Ministries of Finance.
Federal corporate tax rates
| Rate type | Rate | Notes |
|---|---|---|
| Federal small business rate (CCPC) | 9% | On the first $500,000 of active business income, reduced by the Small Business Deduction. |
| Federal general rate | 15% | After the 10% general rate reduction. Applies to income above $500,000. |
| Investment income (CCPC) | 38.67% | Refundable portion claimed back when dividends are paid. |
Provincial & territorial rates
| Province / Territory | CCPC rate | General rate | Combined CCPC (fed + prov) | Combined general |
|---|---|---|---|---|
| Alberta | 2.0% | 8.0% | 11.0% | 23.0% |
| British Columbia | 2.0% | 12.0% | 11.0% | 27.0% |
| Manitoba | 0.0% | 12.0% | 9.0% | 27.0% |
| New Brunswick | 2.5% | 14.0% | 11.5% | 29.0% |
| Newfoundland & Labrador | 3.0% | 15.0% | 12.0% | 30.0% |
| Nova Scotia | 2.5% | 14.0% | 11.5% | 29.0% |
| NWT | 2.0% | 11.5% | 11.0% | 26.5% |
| Nunavut | 3.0% | 12.0% | 12.0% | 27.0% |
| Ontario | 3.2% | 11.5% | 12.2% | 26.5% |
| PEI | 1.0% | 16.0% | 10.0% | 31.0% |
| Quebec | 3.2% | 11.5% | 12.2% | 26.5% |
| Saskatchewan | 1.0% | 12.0% | 10.0% | 27.0% |
| Yukon | 0.0% | 12.0% | 9.0% | 27.0% |
Rates are statutory. Some provinces phase in/out depending on associated company income; check the specific provincial schedule for edge cases.
What “CCPC” means
A Canadian-Controlled Private Corporation (CCPC) is a private corporation that’s resident in Canada and not controlled, directly or indirectly, by non-resident persons or public corporations. Almost every Canadian small business is a CCPC. Only CCPCs get the federal Small Business Deduction.
The business limit
The federal Small Business Deduction applies to the first $500,000 of active business income. This is the “business limit.” It’s shared across associated CCPCs (the “associated group” rule) and is reduced for CCPCs with:
- Taxable capital between $10M and $50M (phase-out).
- Adjusted aggregate investment income above $50,000 (passive income grind).
Most provinces follow the federal $500,000 limit; Saskatchewan’s small business limit is $600,000.
Sales tax rates (reference)
| Jurisdiction | Sales tax |
|---|---|
| Alberta, NT, NU, YT | 5% GST only |
| BC | 5% GST + 7% PST |
| Manitoba | 5% GST + 7% RST |
| Saskatchewan | 5% GST + 6% PST |
| Ontario | 13% HST |
| NB, NL, NS, PEI | 15% HST |
| Quebec | 5% GST + 9.975% QST |
Use the GST/HST calculator to add or remove tax for any province.
Personal tax thresholds (federal, 2026)
For context when planning owner-manager compensation:
| Federal bracket | Rate |
|---|---|
| Up to ~$57,375 | 15% |
| $57,376 – $114,750 | 20.5% |
| $114,751 – $177,882 | 26% |
| $177,883 – $253,414 | 29% |
| Over $253,414 | 33% |
Brackets indexed to inflation. Provincial brackets stack on top of federal.
Sources
- CRA - Corporation tax rates
- Department of Finance Canada
- Each provincial Ministry of Finance website - we cross-check rates each quarter.
Spot something out of date? Let us know.
Disclaimer
This page is for general information. It is not tax advice. Consult a CPA for your specific situation, especially around associated companies, passive income rules, and provincial allocations.
Last updated: June 4, 2026. We review this page when rules or pricing change. Spot an error?