Taxes, payroll and business
Corporate income tax
Estimate corporate tax, retained profit and savings from the small business deduction.
2026 rates · Official sources checked October 1, 2026
Your business
Deductions and investment income
Investments: gains are 50% taxable. CCPC federal tax on interest and taxable gains is 38⅔% before refunds. Canadian dividends from non-connected corporations are deducted from taxable income and subject to 38⅓% Part IV tax. No dividend refund is anticipated. Deductions above reduce active profit only.
Small business limits
Enter limits after allocation among associated corporations, reductions for taxable capital and prior-year investment income, and short-year proration. Defaults assume a full year with no adjustments.
Fiscal year beginning in 2026. For a short year, adjust available business limits.
Ontario: provincial small business rate falls from 3.2% to 2.2% July 1, 2026, prorated by days in your fiscal year.
Canadian-resident corporation with an establishment in one province. Excludes personal services businesses, sector-specific regimes, credits, losses and shareholder tax.
Your result
Estimated tax before dividend refunds
$35,087.67
- Net active profit
- $300,000.00
- Federal tax on active profit
- $27,000.00
- Federal investment tax
- $0.00
- Part IV · dividends received
- $0.00
- Provincial tax
- $8,087.67
- Total tax
- $35,087.67
- Retained after-tax profit
- $264,912.33
- Small business deduction savings
- $44,412.33
Effective tax rate on total profit: 11.696%
Active profit at federal / provincial small business rate: $300,000.00 / $300,000.00.
Received dividends and the non-taxable share of gains are included in retained profit.
Method and assumptions
Enter limits after allocation among associated corporations, reductions for taxable capital and prior-year investment income, and short-year proration. Defaults assume a full year with no adjustments.
Quebec: enter your SBD percentage after paid-hours or primary/manufacturing activity tests (0% if ineligible, 100% if fully eligible, intermediate value for a reduction). Full-SBD rate is 3.2%, or 2.2% for years beginning after April 29, 2026.
Investments: gains are 50% taxable. CCPC federal tax on interest and taxable gains is 38⅔% before refunds. Canadian dividends from non-connected corporations are deducted from taxable income and subject to 38⅓% Part IV tax. No dividend refund is anticipated. Deductions above reduce active profit only.
Canadian-resident corporation with an establishment in one province. Excludes personal services businesses, sector-specific regimes, credits, losses and shareholder tax.
Rates by province and territory
| Province / territory | Small business | General | Provincial limit |
|---|---|---|---|
| Alberta | 11% | 23% | $500,000.00 |
| British Columbia | 11% | 27% | $500,000.00 |
| Manitoba | 9% | 27% | $500,000.00 |
| New Brunswick | 11.5% | 29% | $500,000.00 |
| Newfoundland and Labrador | 11.5% | 30% | $500,000.00 |
| Northwest Territories | 11% | 26.5% | $500,000.00 |
| Nova Scotia | 10.5% | 29% | $700,000.00 |
| Nunavut | 12% | 27% | $500,000.00 |
| Ontario | 11.696% | 26.5% | $500,000.00 |
| Prince Edward Island | 10% | 30% | $600,000.00 |
| Quebec | 12.2% | 26.5% | $500,000.00 |
| Saskatchewan | 10% | 27% | $600,000.00 |
| Yukon | 9% | 27% | $500,000.00 |
Quebec: enter your SBD percentage after paid-hours or primary/manufacturing activity tests (0% if ineligible, 100% if fully eligible, intermediate value for a reduction). Full-SBD rate is 3.2%, or 2.2% for years beginning after April 29, 2026.