The table shows rates resolved at the snapshot date. Federal and provincial small-business portions are calculated against their respective business limits.
Applicable province
Federal
Provincial
Combined
How to use the calculator
Enter corporate taxable income and choose the applicable province. Enable the CCPC/SBD scenario only when assuming fully eligible active business income and an unreduced business limit.
Accounting profit is not automatically taxable income
Accounting expenses, capital cost allowance, non-deductible costs, gains, and losses may receive different tax treatment. The calculator performs no reconciliation and expects the tax amount already determined.
Federal and provincial components
Canadian corporate income tax in this model combines a federal rate with the selected province’s rate. The result shows both amounts separately. Multiple permanent establishments may require provincial allocation that is not calculated here.
Ontario example
On CAD 300,000 of fully SBD-eligible active business income, 9% federal plus 2.2% Ontario produces CAD 33,600 of tax. Without the SBD scenario, the model uses the combined general rate instead.
CCPC status alone is not enough
The Small Business Deduction applies to qualifying active business income within the available federal and provincial limits. Those limits can differ. Associated corporations share the limits, while taxable capital and passive income can reduce them. The checkbox does not test those conditions.
Special cases not included
Investment income, refundable taxes, Part IV Tax, losses, credits, withholding, dividends, and prorated rates are absent. A tax year spanning Ontario’s 1 July 2026 change needs a professional period calculation.
Frequently Asked Questions
How does accounting profit differ from taxable income?
Tax additions, deductions, capital cost allowance, and loss use can change accounting profit. The calculator expects the amount already determined as Canadian taxable income.
When does the Small Business Deduction apply?
It may apply to eligible CCPCs on qualifying active business income within the available business limit. Taxable capital, passive income, and associated corporations can reduce that limit.
Which province applies?
Allocation follows permanent establishments and tax rules, not simply incorporation or the owner’s residence. Corporations operating in multiple provinces need an allocation.
Are investment income and Part IV Tax included?
No. Aggregate investment income, refundable tax, Part IV Tax, RDTOH, and dividend integration are outside this simplified model.
How are losses handled?
The calculator does not model loss carryforwards or carrybacks. Enter the taxable income remaining after applying losses under your tax analysis.
Which tax year do the rates cover?
Rates and business limits were checked on 2 September 2026. Ontario changed its small-business rate from 1 July 2026, and Newfoundland and Labrador changed its lower rate retroactively from 1 January 2026, so a corporation with a different year-end may need proration.
