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2014 Corporate Income Tax Rates

The following table shows the general and small business corporate income tax rates federally and for each province and territory for 2014.  The small business rates are the applicable rates after deducting the small business deduction (SBD), which is available to Canadian-controlled private corporations (CCPCs).  The small business rate is available on active business income up to the amount of the Business Limit.  The federal business limit of $500,000 begins to be reduced when a CCPC's taxable capital reaches $10 million, and is eliminated when taxable capital reaches $15 million.

The federal general rate is net of the 10% federal tax abatement and 13% (2012 and later years) general rate reduction.  The general rate reduction is disallowed for a personal services business (PSB), for taxation years beginning after October 31, 2011, resulting in a federal corporate tax rate of 28% for PSBs.

The general corporate tax rate applies to active business income in excess of the business limit.

See also Corporate Taxation of Investment Income.

1. Federal general tax rates, after general tax reduction and 10% federal tax abatement:
   1. 20.62% in 2007
   2. 19.5% effective January 1, 2008
   3. 19% effective January 1, 2009
   4. 18% effective January 1, 2010
   5. 16.5% effective January 1, 2011
   6. 15% effective January 1, 2012

   The above rate reductions were achieved by eliminating the 1.12% surtax effective January 1, 2008, and increasing the general tax reduction (Income Tax Act s. 123.4), which was 8.5% in 2007/08, and is 13% in 2014.
   

2. NL, NT, NU and PE use the federal small business limit.
   

3. The NL 2014 Budget announced that the small business corporate income tax rate is reduced from 4% to 3% effective July 1, 2014.
   

4. Ontario 2009 budget reduced general rate to

   1. 12% effective July 1, 2010
   2. 11.5% effective July 1, 2011
   3. 11% effective July 1, 2012 - deferred by 2012 Budget
   4. 10% effective July 1, 2013 - deferred by 2012 Budget
      

As per the Ontario 2012 Budget, Ontario is scheduled to return to a balanced budget in 2017-18, and at that time the general corporate tax rate reductions would resume.

5. As per the NS 2013 Budget, the small business income tax rate was reduced to 3% effective January 1, 2014, and the small business limit threshold will be reduced from $400,000 to $350,000.
   
   
6. As per the MB 2013 Budget, the small business limit was increased from $400,000 to $425,000 on January 1, 2014.
   
   
7. The Yukon 2014 Budget announced that the small business income tax rate would be reduced from 4% to 3%.  It was later indicated on their Income Tax Rates page that this tax reduction was effective July 1, 2014.
   

8. The Quebec 2015 Budget announced changes to the eligibility for the SBD - including, for businesses which are not in the primary or manufacturing sectors, the requirement to have more than 3 employees.  Effective for taxation years beginning after December 31, 2016.  The Budget also announced that the general corporate income tax rate will be gradually reduced starting in 2017, as follows:

1. 11.8% in 2017
2. 11.7% in 2018
3. 11.6% in 2019
4. 11.5% in 2020

The small business rate will remain unchanged at 8%, as the small business deduction rate will gradually increase while the general corporate income tax rate decreases.

Resources

Alberta corporate and commodity tax rates

BC corporate income tax

Manitoba corporate income taxes

New Brunswick corporate income tax

Newfoundland & Labrador corporate income tax

Northwest Territories corporate income tax

Nova Scotia corporate income tax & credits

Nunavut Dept of Finance Taxation

Ontario Corporations Tax

Saskatchewan corporate income tax

Yukon income tax rates

Provincial Budgets

Revised: October 26, 2023