Business -> Corporate income tax rates -> 2009 Corporate income tax rates
2009 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 2009. The small business rates are the applicable rates after deducting the small business deduction, 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.
| 2009 Corporate Income Tax Rates | |||
| General | Small Business | Business Limit | |
| Federal (1) | 19% | 11% | $500,000 |
| Alberta (3) | 10% | 3% | $460,000 / $500,000 |
| BC (4) | 11% | 2.5% | $400,000 |
| Manitoba (5) | 13% / 12% | 1% | $400,000 |
| New Brunswick (10) | 13% / 12% | 5% | $500,000 |
| Newfoundland & Labrador | 14% | 5% | $500,000 (2) |
| Nova Scotia (6) | 16% | 5% | $400,000 |
| Northwest Territories | 11.5% | 4% | $500,000 (2) |
| Nunavut | 12% | 4% | $500,000 (2) |
| Ontario (9) | 14% | 5.5% | $500,000 |
| Prince Edward Island (7) | 16% | 3.2% / 2.1% | $500,000 (2) |
| Quebec (8) | 11.9% | 8% | $400,000 / $500,000 |
| Saskatchewan | 12% | 4.5% | $500,000 |
| Yukon | 15% | 4% | $400,000 |
- Federal general rates, after federal
tax abatement and general rate reduction:
- 21% before January 1, 2008
- 19.5% effective January 1, 2008
- 19% effective January 1, 2009
- 18% effective January 1, 2010
- 16.5% effective January 1, 2011
- 15% effective January 1, 2012
2009 Federal Budget increased the business limit to $500,000 for 2009. This change was included in Bill C-10, which received Royal Assent on March 12, 2009.
- NL, NT, NU and PE use the federal small business limit.
- Alberta's business limit is increased effective April 1, 2009. See the Alberta Corporate Tax Act Information Circular CT-17R6: Alberta Small Business Deduction.
- BC's 2009 Budget announced that the general rate would be reduced to 10.5% January 1, 2010, and to 10% effective January 1, 2011. The 2.5% small business rate is effective December 1, 2008. BC's September 2009 Budget Update announced that the small business limit would be increased to $500,000 effective January 1, 2010.
- Manitoba's general tax rate is reduced to 12% effective July 1, 2009. The small business income tax rate is being reduced to zero effective December 1, 2010, as per the Manitoba 2009 budget.
- Nova Scotia has a new
small business tax deduction which eliminates Nova Scotia corporate income
tax for the first 3 taxation years of an eligible new small business (CCPC) after
incorporation. Nova Scotia announced in their 2009
Budget that their small business rate would be reduced to:
- 4% in 2011
- 3% in 2012
- 2.5% in 2013
- Prince Edward Island's small business rate is reduced to 2.1% effective April 1, 2009 and 1% effective April 1, 2010.
- The Quebec 2009 budget proposes to increase the business limit to $500,000, effective March 20, 2009.
- A surtax of 4.25% applies to CCPCs whose adjusted taxable
income, including all associated corporations, exceeds the small business
limit. The surtax fully claws back the small business deduction when
the adjusted taxable income is greater than or equal to $1.5 million. The
Ontario 2009 budget proposes to
eliminate this surtax effective July 1, 2010.
Ontario 2009 budget reduces general rate to
- 12% effective July 1, 2010
- 11.5% effective July 1, 2011
- 11% effective July 1, 2012
- 10% effective July 1, 2013
Ontario 2009 budget reduces small business rate to 4.5% effective July 1, 2010.
- The NB 2009 budget
reduces the general rate to 12% effective July 1, 2009. This rate will
be further reduced to:
- 11% effective July 1, 2010
- 10% effective July 1, 2011
- 8% effective July 1, 2012
The NB business limit is increased by the 2009 budget, from $400,000 to $500,000, effective January 1, 2009.
Resources
Canada Revenue Agency (CRA) Federal, Provincial and Territorial corporate income tax rates.Revised: October 26, 2023