Canada corporate tax rate
Net federal general corporate income tax rate on active business income, after the federal abatement and the general rate reduction.
| Current value | 15 percent |
|---|---|
| In force from | 2012-01-01 |
| Official source | Income Tax Act, RSC 1985, c. 1 (5th Supp.), s. 123(1)(a) (basic Part I rate 38%), s. 124(1) (10% federal abatement for income earned in a province), s. 123.4(2) (general rate reduction, 13%), s. 125(1) (small business deduction). Rates published by the Canada Revenue Agency, 'Corporation tax rates' |
| Last verified | 2026-07-20 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
The STATUTORY NOMINAL federal rate is served, with the arithmetic shown rather than any combined figure blended in. Build-up, exactly as the CRA states it: basic Part I tax under s. 123(1)(a) is 38% of taxable income; less the 10% federal abatement under s. 124(1) for income earned in a Canadian province or territory, giving 28%; less the 13% general rate reduction under s. 123.4(2), giving a NET federal rate of 15% (38 - 10 - 13 = 15). That 15% has been in force since 1 January 2012, the endpoint of a phased reduction from 22.12% in 2007 (21% in 2007, 19.5% in 2008, 19% in 2009, 18% in 2010, 16.5% in 2011, 15% from 2012). The abatement is why the headline 38% is never actually paid on provincially earned income — it vacates federal room for provincial corporate tax. PROVINCIAL CIT STACKS ON TOP and is not included in the value. General (higher) provincial/territorial rates for 2026: Ontario 11.5%, Northwest Territories 11.5%, British Columbia 12%, Manitoba 12%, Nunavut 12%, Saskatchewan 12%, Yukon 12%, New Brunswick 14%, Nova Scotia 14%, Newfoundland and Labrador 15%, Prince Edward Island 15% (reduced from 16% effective 1 July 2025); Alberta (8%) and Quebec (11.5%) administer their own corporate tax and have no collection agreement with the CRA. Combined federal-plus-provincial general rates therefore run roughly 23% to 30% — for example about 26.5% in Ontario and 23% in Alberta. Do not use a combined figure as the national rate. Other statutory rates deliberately NOT served as the headline: the small-business rate of 9% net federal (the s. 125 small business deduction of 19% applied to the 28% post-abatement rate) on the first CAD 500,000 of active business income of a Canadian-controlled private corporation, subject to a taxable-capital grind and, in most provinces, a matching provincial lower rate of 0% to 3.2%; a 7.5% net federal rate (4.5% for CCPCs claiming the small business deduction) for manufacturers of qualifying zero-emission technology; and an additional 1.5% of taxable income on banks and life insurers, subject to a CAD 100 million exemption shared among group members. Access quirk: canada.ca returns HTTP 403 to scripted fetchers (re-confirmed 2026-07-20); this page was read through a real browser session.
Get it programmatically
curl https://usaref.dev/v1/ca/corporate-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://usaref.dev/v1/ca/corporate-tax/history?from=2020-01-01
# Provenance: curl https://usaref.dev/provenance/ca/corporate-taxOther Canada series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · income tax rates · official exchange rates