See your corporation's 2026 federal and provincial tax, effective rate, and after-tax profit for any province. Built for CCPCs earning active business income.
Ontario: 12.2% on the first $500,000, 26.5% above $500,000. Assumes a CCPC earning active business income with the full small business deduction.
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Combined federal + provincial rates for a CCPC: the small-business rate applies to the first $500,000 of active business income, the general rate above it.
| Province / Territory | Small-business rate | General rate |
|---|---|---|
| Alberta | 11% | 23% |
| British Columbia | 11% | 27% |
| Manitoba | 9% | 27% |
| New Brunswick | 11.5% | 29% |
| Newfoundland and Labrador | 11% | 30% |
| Northwest Territories | 11% | 26.5% |
| Nova Scotia | 10.5% | 29% |
| Nunavut | 12% | 27% |
| Ontario | 12.2% | 26.5% |
| Prince Edward Island | 10% | 30% |
| Quebec | 12.2% | 26.5% |
| Saskatchewan | 10% | 27% |
| Yukon | 9% | 27% |
Ontario's provincial small-business rate falls from 3.2% to 2.2% on July 1, 2026; the prevailing 3.2% is shown. Quebec's small-business rate requires about 5,500 paid employee hours; corporations below it pay Quebec's general rate (the calculator has a toggle for this). Saskatchewan and PEI apply their small-business rate to a $600,000 provincial limit, Nova Scotia to $700,000; the federal limit stays $500,000, and the calculator models the difference.
Two bands, one bill. An Ontario CCPC earning $120,000 pays $14,640 (12.2% effective) and keeps $105,360.
A corporation files its own T2 return and pays its own tax, separate from your personal T1. These are the two federal rates every provincial rate stacks on.
This estimate is only as good as the income you typed. ReInvestWealth keeps your corporation's books current automatically, so you always know the real number.
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For a Canadian-controlled private corporation (CCPC) earning active business income, the federal corporate income tax rate is 9% on the first $500,000 (the small business deduction) and 15% above it. Each province adds its own rate on top, so the combined small-business rate ranges from 9% (Manitoba and Yukon add nothing) to 12.2% (Ontario and Quebec). The calculator above applies your province's rates for you.
The SBD is the reduction that brings the federal rate from 15% down to 9% on a CCPC's first $500,000 of active business income each year (provinces run parallel reductions, and Saskatchewan, PEI, and Nova Scotia apply theirs up to higher provincial limits of $600,000, $600,000, and $700,000). The $500,000 federal limit is shared between associated corporations, and it shrinks for large corporations (taxable capital over $10 million) or when the corporation earns more than $50,000 of passive investment income in a year.
The combined small business tax rate (federal plus provincial) for 2026 ranges from 9% (Manitoba, Yukon) to 12.2% (Ontario, Quebec), with most provinces between 10% and 11.5%. General rates on income above $500,000 range from 23% (Alberta) to 30% (Newfoundland, PEI). The full table is on this page, and the calculator applies the right pair automatically.
Yes, for Ontario and every other province and territory. Pick Ontario and the corporation tax calculator applies its 3.2% small-business rate on top of the federal 9% (12.2% combined), and the 11.5% provincial general rate above the limit (26.5% combined). Pick a different province and the right pair loads automatically.
They apply to a CCPC earning active business income with the full small business deduction available, which covers most incorporated Canadian businesses. They don't apply to passive investment income (taxed at much higher refundable rates), non-CCPCs, or income over a shared $500,000 limit between associated corporations. Quebec also requires roughly 5,500 paid employee hours to get its small-business rate, so many small Quebec service corporations pay the general Quebec rate instead; the calculator has a toggle for it. When in doubt, confirm with a CPA; you can book a consultation through ReInvestWealth.
The T2 return is due six months after your fiscal year-end, but the balance is due earlier: two months after year-end, or three for most small CCPCs claiming the SBD. Once your total tax tops $3,000 for the year, the CRA expects monthly or quarterly instalments through the year instead of one payment. Alberta and Quebec corporations remit their provincial portion separately (to Alberta TRA and Revenu Québec).
Yes. Salary (and the employer CPP that comes with it) is a deductible expense, so it reduces the corporation's taxable income; dividends are paid from after-tax profit and don't. Whether salary or dividends puts more in your pocket overall depends on your province and income, which is exactly what our salary vs dividend calculator compares.
Yes, it's free with no sign-up required. ReInvestWealth is accounting software that keeps your corporation's books clean all year, so the income number you just typed stops being a guess: revenue and expenses are categorized automatically and your reports are always current. You can start a free 30-day trial anytime.
ReInvestWealth categorizes your corporation's revenue and expenses automatically all year, and CPAs are a booking away when you need judgment calls.