General Corporate Income Tax Rates – Combined Federal and Provincial
General Corporate Rate as of January 15, 2020.
Based on Calendar Year-End
| 2019 | 2020 | |
|---|---|---|
| Alberta (2) | 27.00% | 25.00% |
| British Columbia | 27.00% | 27.00% |
| Saskatchewan | 27.00% | 27.00% |
| Manitoba | 27.00% | 27.00% |
| Ontario | 26.50% | 26.50% |
| Quebec (1) | 26.60% | 26.50% |
| New Brunswick | 29.00% | 29.00% |
| Nova Scotia | 31.00% | 31.00% |
| Prince Edward Island | 31.00% | 31.00% |
| Newfoundland and Labrador | 30.00% | 30.00% |
| Northwest Territories | 26.50% | 26.50% |
| Nunavut | 27.00% | 27.00% |
| Yukon | 27.00% | 27.00% |
(1) Quebec Bill 112 reduces the general tax rate by 0.1% on Jan 1 of each year from 2017 to 2020. The general rates would be 11.8%, 11.7%, 11.6%, and 11.5% from 2017 to 2020, respectively.
(2) As part of the Job Creation Tax Cut, Alberta’s corporate tax rate will be reduced to 9% on Jan 1, 2021 and 8% on Jan 1, 2022
Corporate Income Tax Rates – Combined Federal and Provincial
Small Business Rate as of January 15, 2020.
Based on Calendar Year-End
| 2019 | 2020 | Small Business Limit (2020) | |
|---|---|---|---|
| Federal Only | 9.00% | 9.00% | $500,000 |
| Alberta | 11.00% | 11.00% | $500,000 |
| British Columbia | 11.00% | 11.00% | $500,000 |
| Saskatchewan (1) | 11.00% | 11.00% | $600,000 |
| Manitoba | 9.00% | 9.00% | $500,000 |
| Ontario | 12.50% | 12.20% | $500,000 |
| Quebec (2) | 15.00% | 14.00% | $500,000 |
| New Brunswick | 11.50% | 11.50% | $500,000 |
| Nova Scotia | 12.00% | 12.00% | $500,000 |
| Prince Edward Island | 12.50% | 12.00% | $500,000 |
| Newfoundland and Labrador | 12.00% | 12.00% | $500,000 |
| Northwest Territories | 13.00% | 13.00% | $500,000 |
| Nunavut (4) | 13.00% / 12.00% | 12.00% | $500,000 |
| Yukon (3) | 11.00% | 11.00% | $500,000 |
(1) Small business rates are 11% for small business deduction limit up to $500,000, and 17% for small business deduction limit between $500,000 to $600,000.
(2) For small and medium sized businesses (SMB) in sectors other than primary and manufacturing.
(3) Small business rate of 10.5% applies to M&P income eligible for SBD and 11% for non-M&P income.
(4) Effective July 1, 2019, Nunavut’s Bill 26 reduced the small business rate from 4% to 3%
Disclaimer:
The above tax rates are for informational purposes only. Caution must be exercised with respect to the use of the information due to possible misinterpretation or misapplication of the tax rates.