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 is 11%.
For the other corporations, the net tax rate is decreased as follows:
- 19% effective January 1, 2009
- 18% effective January 1, 2010
- 16.5% effective January 1, 2011
- 15% effective January 1, 2012
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 the income eligible for the federal small business deduction. One component of the small business deduction is the business limit. Some provinces or territories choose to use the federal business limit. Others establish their own business limit.
Higher rate
The higher rate applies to all other 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, 2011, and may change during 2011.
| Province or territory | Lower rate | Higher rate |
|---|---|---|
| Newfoundland and Labrador | 4% | 14% |
| Nova Scotia | 4.5% | 16% |
| Prince Edward Island | 1% | 16% |
| New Brunswick | 5% | 11%* |
| Ontario | 4.5% | 12%** |
| Manitoba | nil | 12% |
| Saskatchewan | 4.5%*** | 12% |
| British Columbia | 2.5% | 10% |
| Yukon | 4% | 15% |
| Northwest Territories | 4% | 11.5% |
| Nunavut | 4% | 12% |
* 10% effective July 1, 2011
** 11.5% effective July 1, 2011
*** 2% effective July 1, 2011
See Dual tax rates for more detailed information.
