Ontario basic income tax

The basic rate of income tax is 14%. This rate will be reduced as follows:

• 12% effective July1, 2010;
• 11.5% effective July 1, 2011;
• 11% effective July 1, 2012; and
• 10% effective July 1, 2013.

The tax is prorated based on the number of days in the year when the tax year straddles these dates.

A corporation that was a Canadian-controlled private corporation (CCPC) throughout the tax year can reduce its Ontario basic income tax by claiming the Ontario small business deduction.

Reporting the tax

You can use Schedule 500, Ontario Corporation Tax Calculation, to calculate your Ontario basic income tax. Schedule 500 is a worksheet and does not have to be filed with your return.

On line 270 of Schedule 5, Tax Calculation Supplementary - Corporations, enter the amount of basic income tax calculated.

Forms and Publications

• Schedule 5, Tax Calculation Supplementary - Corporations
• Schedule 500, Ontario Corporation Tax Calculation

Government partners

• Ontario (Ministry of Revenue)