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2017 Corporate Income Tax Rates

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Business -> Corporate Income Tax Rates -> 2017 Corporate Income Tax Rates

2017 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 2017.  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, until the end of 2015.  The Federal 2016 Budget increased the corporate tax rate for PSBs from 28% to 33% effective January 1, 2016.

2017 Corporate Income Tax Rates
  Active Business Income Investment
  General Small Business
Federal  (3) 15% 10.5% $500,000 38.7%
Alberta (4) 12% 2% $500,000 12%
BC (6) 11% 2.5% / 2.0% $500,000 11%
Manitoba (5) 12% 0% $450,000 12%
New Brunswick (2) 14% 3.5% / 3.0% $500,000 14%
Newfoundland & Labrador (1) 15% 3% $500,000 15%
Nova Scotia (8) 16% 3% $500,000 16%
Northwest Territories (1) 11.5% 4% $500,000 11.5%
Nunavut (1) 12% 4% $500,000 12%
Ontario 11.5% 4.5% $500,000 11.5%
Prince Edward Island (1) 16% 4.5% $500,000 16%
Quebec 11.9% 8% $500,000 11.9%
Saskatchewan (7) 12% / 11.5% 2% $500,000 12%
Yukon (9) 15% / 12% 3% / 2% $500,000 15%

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

See also Corporate Taxation of Investment Income

(1)  NL, NT, NU and PE use the federal small business limit.

(2) New Brunswick's 2017 budget lowered the Small Business Income Tax Rate from 3.5% to 3% effective April 1, 2017.

(3) The Federal 2015 Budget announced that the Small Business Tax Rate and the non-eligible dividend tax credit would be revised starting in 2016.  However, the Federal 2016 Budget changed this, to leave the small business tax rate, non-eligible dividend gross-up and non-eligible dividend tax credit rate at 2016 levels.

  Will not happen
  2015 2016 2017 2018 2019+
Small business tax rate 11% 10.5% 10% 9.5% 9%
Non-eligible dividend gross-up  18% 17% 17% 16% 15%
Non-eligible dividend tax credit 11.017% 10.5% 10% 9.5% 9%

(4) Alberta's 2016 Budget indicates that the small business corporate tax rate is reduced from 3% to 2% effective January 1, 2017.

(5) Manitoba announced that their business limit would be increased to $500,000 from $450,000 in 2017, as per their December 1, 2015 news release.  However, there was a change in government in 2016, and the 2017 Budget indicates that the increase will not happen.

(6) The BC 2017 Budget lowered the small business corporate tax rate from 2.5% to 2.0% effective April 1, 2017.

(7) The Saskatchewan 2017 Budget announced that the general corporate income tax rate would be reduced to 11.5% on July 1, 2017, and to 11.0% on July 1, 2019.  The small business tax rate does not change.

(8) The Nova Scotia 2017 Budget announced that the threshold for the small business deduction would be increased from $350,000 to $500,000.  Nova Scotia provides a corporate tax holiday under s. 42 of their Income Tax Act for the first 3 taxation years of a new small business after incorporation.  See New Small Business Tax Deduction on the Nova Scotia website.

(9) The Yukon 2017 Budget announced that the general and small business corporate income tax rates would be reduced effective July 1, 2017.

Sources for the above information

bulletCanada Revenue Agency (CRA) Federal, Provincial and Territorial corporate income tax rates.
bulletAlberta corporate and commodity tax rates
bulletBC corporate income tax
bulletManitoba corporate income taxes
bulletNew Brunswick corporate income tax
bulletNewfoundland & Labrador corporate income tax
bulletNorthwest Territories corporate income tax
bulletNova Scotia corporate income tax & credits
bulletNunavut Dept of Finance Taxation
bulletOntario corporate income tax
bulletQuebec corporate income tax rates
bulletSaskatchewan corporate income tax
bulletYukon income tax rates
bulletProvincial Budgets

Revised: May 13, 2017

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