Canada

British Columbia
Canada Federal
New Brunswick
Nova Scotia
Ontario

Incorporating in Canada
Canada Taxation
Corporate Tax Rates

Federal Tax Rates

The basic rate of Part I tax is 38% of your taxable income, 28% after federal tax abatement.

After the general tax reduction, the net tax rate is:

18% effective January 1, 2010
16.5% effective January 1, 2011
15% effective January 1, 2012

For Canadian-controlled private corporations claiming the small business deduction, the net tax rate is 11%.

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).

Provincial and territorial lower and higher tax rates not including Quebec and Alberta

Province or territory	Lower rate	Higher rate
Newfoundland and Labrador	4%	14%
Nova Scotia	3.5%	16%
Prince Edward Island	1%	16%
New Brunswick	4.5%	10%
Manitoba	nil	12%
Saskatchewan	2%	12%
British Columbia	2.5%	10%
Yukon	4%	15%
Northwest Territories	4%	11.5%
Nunavut	4%	12%