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2010 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 2010.  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.

1. Federal general rates, after federal tax abatement and general rate reduction:
   1. 21% before January 1, 2008
   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

   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.
   

2. NL, NT, NU and PE use the federal small business limit.
3. Alberta's business limit was increased from $460,000 to $500,000 effective April 1, 2009.  See the Alberta Corporate Tax Act Information Circular CT-17R6:  Alberta Small Business Deduction.
4. BC's  2009 Budget announced that the general rate would be reduced from 11% 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.
5. Manitoba's general tax rate is reduced from 13% 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.
6. 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 2010 Budget that their small business rate would be reduced to 4.5% on January 1, 2011.
7. Prince Edward Island's small business rate was reduced from 3.2% to 2.1% effective April 1, 2009 and 1% effective April 1, 2010.
8. The Quebec 2009 budget increased the business limit from $400,000 to $500,000, effective March 20, 2009.
9. 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 eliminates this surtax effective July 1, 2010.

   Ontario 2009 budget reduces general rate to

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

   Ontario 2009 budget reduces small business rate to 4.5% effective July 1, 2010.

10. The NB 2009 budget reduced the general rate to 12% effective July 1, 2009.  This rate will be further reduced to:
    1. 11% effective July 1, 2010
    2. 10% effective July 1, 2011
    3. 8% effective July 1, 2012

    The NB business limit was increased by the 2009 budget, from $400,000 to $500,000, effective January 1, 2009.

11. The NL 2010 Budget announced that the small business corporate income tax rate will be reduced from 5% to 4% effective April 1, 2010.

Resources

Alberta corporate and commodity tax rates

Provincial Budgets

Revised: October 26, 2023