Canada Revenue Agency
www.cra.gc.ca
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Corporation tax rates
Federal rates
The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement.
For Canadian-controlled private corporations claiming the small business deduction, the net tax rate before surtax* is:
- 12% before January 1, 2008
- 11% effective January 1, 2008
For the other corporations, the net tax rate before surtax* will decrease as follows:
- 21% before January 1, 2008
- 19.5% effective January 1, 2008
- 19% effective January 1, 2009
- 18% effective January 1, 2010
- 16.5% effective January 1, 2011
- 15% effective January 1, 2012
*The corporate surtax is zero, effective January 1, 2008.
Provincial or territorial rates
Generally, provinces and territories have two rates of income tax - a lower rate and a higher rate.
Lower rate
The lower rate applies to either:
- the income eligible for the federal small business deduction; or
- the income based on limits established by the particular province or territory.
Higher rate
The higher rate applies to all other taxable income.
Provincial and territorial tax rates (except Quebec and Alberta)
The following table shows the income tax rates for provinces and territories (except Quebec and Alberta, which do not have corporation tax collection agreements with the CRA).
These rates are in effect on January 1, 2010, and some might change during 2010.
| Province or territory | Lower rate | Higher rate |
|---|---|---|
| Newfoundland and Labrador | 5% | 14% |
| Nova Scotia | 5% | 16% |
| Prince Edward Island | 2.1% | 16% |
| New Brunswick | 5% | 12% |
| Ontario | 5.5% | 14% |
| Manitoba | 1% | 12% |
| Saskatchewan | 4.5% | 12% |
| British Columbia | 2.5% | 10.5% |
| Yukon | 4% | 15% |
| Northwest Territories | 4% | 11.5% |
| Nunavut | 4% | 12% |
See Dual tax rates for more detailed information.
