Corporate Tax Calculator

Enter your active business income and province to estimate the combined federal and provincial tax your corporation owes for the 2025 tax year.

2025 tax year rates All 13 provinces Updates as you type

Your business

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How it works. A CCPC pays the small business rate on the first $500,000 of active business income and the general rate above it. Both layers, federal and provincial, are included below.

Estimated corporate tax

$0

0% effective rate on $0 of income

Tax $0 Retained $0
Small business band$0
Tax at 0%$0
General band$0
Tax at 0%$0
After-tax retained$0

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This calculator uses published rates. Your actual position depends on the credits, deductions and structure behind your numbers.

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How corporate tax is calculated in Canada

A Canadian-controlled private corporation pays two layers of tax on active business income: federal and provincial. The federal small business rate is 9% on the first $500,000 of active business income; above that the federal general rate of 15% applies. Each province then adds its own rate on top, which is why the same profit produces a different bill in Manitoba than in Nova Scotia.

The $500,000 threshold is the small business deduction limit. It is shared across associated corporations, so a group of related companies divides one limit rather than claiming it each. The limit is also ground down once the group's taxable capital passes $10 million, disappearing entirely at $50 million.

What Our Corporate Tax Calculator Service Includes

The estimate covers active business income only. Investment income is taxed differently and largely refundable, capital gains have their own inclusion rate, and provincial credits for research, manufacturing or regional investment are not modelled. Payroll and sales tax are separate obligations. For the full picture, see corporate tax filing or tax planning.

Corporate tax rates by province, 2025 tax year
ProvinceSmall businessCombined w/ federalGeneralSales tax
Ontario 3.2%12.2%11.5%13% HST
British Columbia 2%11%12%12% GST + PST
Alberta 2%11%8%5% GST only
Quebec 3.2%12.2%11.5%14.975% GST + QST
Manitoba 0%9%12%12% GST + RST
Saskatchewan 1%10%12%11% GST + PST
Nova Scotia 1.5%10.5%14%14% HST
New Brunswick 2.5%11.5%14%15% HST
Prince Edward Island 1%10%16%15% HST
Newfoundland and Labrador 2.5%11.5%15%15% HST
Northwest Territories 2%11%11.5%5% GST only
Nunavut 3%12%12%5% GST only
Yukon 0%9%12%5% GST only

Rates reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.

Corporate Tax Filing: Frequently Asked Questions

The federal rate is 9% on the first $500,000 of active business income for a CCPC and 15% above that. Provinces add between 0% and 3.2% at the small business level and 8% to 14% at the general level, so combined rates run from 9% to about 31% depending on province and income band.
It reduces the federal rate from 15% to 9% on the first $500,000 of active business income earned by a Canadian-controlled private corporation. Associated corporations share one limit between them.
Six months after your fiscal year end. Any balance owing is due two months after year end, or three months for a CCPC claiming the small business deduction, so the payment deadline arrives before the filing deadline.
No. It estimates tax on active business income. Passive investment income inside a corporation is taxed at a much higher rate, part of which is refundable when dividends are paid out.
No. It uses published rates and ignores credits, loss carryforwards and provincial incentives specific to your situation. Use it for planning, then have a professional tax accountant confirm the figure before filing.

What Canadians search about this

Answered plainly. Browse every question in the Canadian tax answers directory.

Non-taxable income is money you receive that never enters taxable income. Common examples are lottery and most gambling winnings, gifts and inheritances, growth and withdrawals inside a TFSA, the GST/HST credit and Canada child benefit, most life insurance death benefits, and child support under current-rule agreements. A few amounts are reported and then deducted, such as workers' compensation and social assistance, because they still affect benefit calculations, so report anything that arrives on a slip even when no tax results.
Start by claiming everything you are entitled to: RRSP contributions, child care, moving and employment expenses, self-employment costs, tuition, medical expenses, donations and the credits that follow your family situation. Timing helps too, such as deferring a bonus or triggering a capital loss against a gain. Pension income splitting and spousal RRSP contributions move income to a lower-rate spouse. For a business, incorporating and planning how money is drawn out matters. Leaving income unreported is evasion, not planning.
Different taxes run on different clocks. A corporation files its T2 six months after the fiscal year end, with the balance due two months after year end, or three months for an eligible CCPC claiming the small business deduction, and pays instalments monthly or quarterly once its tax is more than a small amount. GST/HST returns are monthly, quarterly or annual depending on revenue. Payroll deductions are remitted at least monthly, and sole proprietors pay quarterly instalments.
Often yes. Filing is required when you owe tax, but also when the CRA asks you to file, when you disposed of capital property, when benefits have to be repaid, and in several other situations. Even where no rule forces you, filing is how credits such as the GST/HST credit and the Canada child benefit are calculated, and how RRSP room is created. For the 2025 tax year the personal deadline was 30 April 2026.
The Canada Child Benefit and related credits are calculated on adjusted family net income taken from both spouses' prior-year returns, so there is no single income cut-off. Payments sit at a maximum up to a threshold, then reduce as income rises, and the amounts and thresholds are indexed each July. Both partners must file every year, even with no income, or payments stop. Use the CRA's child and family benefits calculator for your own figures.
Car insurance is deductible in proportion to business use. Keep a log of business kilometres and total kilometres for the year, then claim that fraction of insurance alongside fuel, maintenance, licence fees and loan interest. Driving between home and a regular workplace counts as personal, not business. An employee must have employment conditions that require a vehicle and a signed employer certification form before claiming any vehicle cost.
Udit Gupta, founder of Tax Filings Canada

Rates and method reviewed by Udit Gupta

Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA

Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. Big 4 trained at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia, he founded his accounting practice in 2014 to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.

The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023

Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.

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