Corporate Income Tax Rates Canada

Combined Federal and Provincial/Territorial Tax Rates for Income Earned by a CCPC, Effective January 1, 2017 and 2018:

  Small
Business Income up to $500,000
Active Business Income earned in excess of $500,000 Investment Income
Ontario 15.0% 26.5% 50.2%
British Columbia 13.0 26.0 49.7
Alberta 12.5 27.0 50.7
Saskatchewan 12.5 27.0 50.7
Québec 18.5 26.8/26.7 50.5/50.4
New Brunswick 14.0 29.0 52.7
Nova Scotia 13.5/26.5 i 31.0 54.7
P.E.I 15.0 31.0 54.7
Newfoundland & Labrador 13.5 30.0 53.7
N.W.T 14.5 27.0 50.7
Nunavut 14.5 27.0 50.7
Yukon 13.5 30.0 53.7
Manitoba 10.5/22.5 ii 27.0 50.7

i) Nova Scotia’s small business income threshold is $350,000. Income greater than this threshold is subject to Nova Scotia’s general income tax rate of 16%.

ii) Manitoba increased the small business income threshold to $500,000 (from $450,000) starting in 2017. Income greater than this threshold is subject to Manitoba’s general income tax rate of 12%

Combined Federal and Provincial/Territorial Tax Rates for Income Earned by a General Corporation, Effective January 1, 2017 and 2018:

  General M&P Income General Business Income Investment Income
Ontario 25.0% 26.5% 26.5%
British Columbia 26.0 26.0 26.0
Alberta 27.0 27.0 27.0
Saskatchewan 25.0 27.0 27.0
Québec 26.8/26.7 26.8/26.7 26.8/26.7
New Brunswick 29.0 29.0 29.0
Nova Scotia 31.0 31.0 31.0
P.E.I 31.0 31.0 31.0
Newfoundland & Labrador 30.0 30.0 30.0
N.W.T 26.5 26.5 26.5
Nunavut 27.0 27.0 27.0
Yukon i 17.5 30.0 30.0
Manitoba 27.0 27.0 27.0

i) Yukon provides a manufacturing and processing tax credit that effectively reduces the corporate tax rate on the corporation’s Canadian manufacturing and processing profits earned in the year in the Yukon to 2.5%.

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