Business -> Corporate Income Tax Rates -> 2015 Corporate Income Tax Rates
2015 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 2015. 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.
2015 Corporate Income Tax Rates |
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| Active Business Income | Investment Income CCPC |
|||
| General | Small
Business (CCPC) |
Business Limit |
||
| Federal (5) | 15% | 11% | $500,000 | 34.7% |
| Alberta (7) | 10% / 12% | 3% | $500,000 | 10% / 12% |
| BC | 11% | 2.5% | $500,000 | 11% |
| Manitoba (6) | 12% | 0% | $425,000 | 12% |
| New Brunswick (4) | 12% | 4% | $500,000 | 12% |
| Newfoundland & Labrador (1) | 14% | 3% | $500,000 | 14% |
| Nova Scotia | 16% | 3% | $350,000 | 16% |
| Northwest Territories (1) | 11.5% | 4% | $500,000 | 11.5% |
| Nunavut (1) | 12% | 4% | $500,000 | 12% |
| Ontario (2) | 11.5% | 4.5% | $500,000 | 11.5% |
| Prince Edward Island (1) | 16% | 4.5% | $500,000 | 16% |
| Quebec (3) | 11.9% | 8% | $500,000 | 11.9% |
| Saskatchewan | 12% | 2% | $500,000 | 12% |
| Yukon | 15% | 3% | $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) Ontario 2009 budget reduced general rate to
- 12% effective July 1, 2010
- 11.5% effective July 1, 2011
- 11% effective July 1, 2012 - deferred by 2012 Budget
- 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.
(3) 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:
- 11.8% in 2017
- 11.7% in 2018
- 11.6% in 2019
- 11.5% in 2020
The Quebec 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.
(4) New Brunswick small business rate was lowered from 4.5% to 4.0% effective January 1, 2015, as per NB 2015 Budget. The General corporate income tax rate is increased to 14% effective April 1, 2016 as per the NB 2016 Budget.
(5) 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 proposes 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% |
(6) Manitoba business limit will be increased from $425,000 to $450,000 on January 1, 2016, as per MB 2015 Budget, and to $500,000 in 2017 as per their December 1, 2015 news release.
(7) Alberta's Bill 2, which received Royal Assent on June 29, 2015, enacts a higher corporate tax rate effective July 1, 2015.
Resources
Canada Revenue Agency (CRA) Federal, Provincial and Territorial corporate income tax ratesAlberta corporate and commodity tax rates
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
Saskatchewan corporate income tax
Revised: October 26, 2023