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2011 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 2011.  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.

The federal general rate is net of the 10% federal tax abatement and 11.5% (2011) 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 corporate tax rate of 28% for PSBs.

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. 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 was effective December 1, 2008.  The province announced (Dec 29, 2010 news release - pdf) an intention to reduce the small business rate to zero% by April 1, 2012.

In a May 25, 2011 news release, the BC government announced that if the HST referendum resulted in the HST being kept in place, then the HST rate would be reduced, the small business rate reduction would be deferred indefinitely, and the general rate would be increased to 12% on January 1, 2012.  The HST was defeated, but will still be in place until some time in 2013.  As a result, it appears that any corporate tax rate changes are on hold for the present time.

4. 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.

5. 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

   The previously planned reduction to 8% effective July 1, 2012 has been eliminated by the NB 2011 budget.

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

   The NB 2011 budget announced a reduction in the small business corporate income tax rate, to 4.5% effective January 1, 2012, with a plan to reduce the rate by 50% over a four-year term.
   

6. It was announced in the Yukon 2011 Budget address that their Income Tax Act was amended last fall to increase the small business deduction limit from $400,000 to $500,000 for 2011.

7. Saskatchewan Budget 2011 announced a reduction in the small business corporate tax rate from 4.5% to 2% effective July 1, 2011.

8. NS 2010 Budget lowered the small business corporate tax rate from 5% to 4.5%.  As per the NS 2011 Budget, the 2012 rate will be further reduced, to 4%, effective January 1, 2012.

Resources

Alberta corporate and commodity tax rates

Revised: October 26, 2023