Enter your active business income and province to estimate the combined federal and provincial tax your corporation owes for the 2025 tax year.
Your business
How it works. A CCPC pays the small business rate on the first $500,000 of active business income and the general rate above it. Both layers, federal and provincial, are included below.
Estimated corporate tax
$0
0% effective rate on $0 of income
How corporate tax is calculated in Canada
A Canadian-controlled private corporation pays two layers of tax on active business income: federal and provincial. The federal small business rate is 9% on the first $500,000 of active business income; above that the federal general rate of 15% applies. Each province then adds its own rate on top, which is why the same profit produces a different bill in Manitoba than in Nova Scotia.
The $500,000 threshold is the small business deduction limit. It is shared across associated corporations, so a group of related companies divides one limit rather than claiming it each. The limit is also ground down once the group's taxable capital passes $10 million, disappearing entirely at $50 million.
What this calculator does not include
The estimate covers active business income only. Investment income is taxed differently and largely refundable, capital gains have their own inclusion rate, and provincial credits for research, manufacturing or regional investment are not modelled. Payroll and sales tax are separate obligations. For the full picture, see corporate tax filing or tax planning.
| Province | Small business | Combined w/ federal | General | Sales tax |
|---|---|---|---|---|
| Ontario | 3.2% | 12.2% | 11.5% | 13% HST |
| British Columbia | 2% | 11% | 12% | 12% GST + PST |
| Alberta | 2% | 11% | 8% | 5% GST only |
| Quebec | 3.2% | 12.2% | 11.5% | 14.975% GST + QST |
| Manitoba | 0% | 9% | 12% | 12% GST + RST |
| Saskatchewan | 1% | 10% | 12% | 11% GST + PST |
| Nova Scotia | 1.5% | 10.5% | 14% | 14% HST |
| New Brunswick | 2.5% | 11.5% | 14% | 15% HST |
| Prince Edward Island | 1% | 10% | 16% | 15% HST |
| Newfoundland and Labrador | 2.5% | 11.5% | 15% | 15% HST |
| Northwest Territories | 2% | 11% | 11.5% | 5% GST only |
| Nunavut | 3% | 12% | 12% | 5% GST only |
| Yukon | 0% | 9% | 12% | 5% GST only |
Rates reviewed for the 2025 tax year by Udit Gupta, Cross-Border Tax Expert, Legal Quotient Consultants. Federal and provincial rates change annually, and this tool is an estimate for planning rather than tax advice. Confirm current figures before relying on them for a filing.
Cross-border tax case studies
A Group File That Had to Describe the Whole Group
The master file is a picture of the business rather than of one company, and it has to agree with what each local file says. Assembling it surfaces inconsistencies between entities that nobody had compared.
Read how this one runsA Foreign Subsidiary That Nobody Had Been Reporting
Owning a company abroad triggers an information return separate from the corporate return, with its own penalty. The work is the surplus and income computations behind it, which also determine how a future dividend is taxed on the way home.
Read how this one runsWhether Documentation Was Required At All
The obligation turns on the transactions that actually happened rather than on the size of the group, and the penalty for contemporaneous documentation is charged by reference to the adjustment. The review establishes which side of the line the company sits.
Read how this one runsA Foreign Affiliate Return Filed Years Late
The reporting obligation on a company held abroad runs separately from the corporate return and carries its own exposure. The work is reconstructing the surplus position across the open years before any filing goes in.
Read how this one runsA Country-by-Country Report and Who Files It
The obligation sits with the group and the filing can fall on a surrogate where the parent's jurisdiction does not exchange. Establishing who files where comes before preparing anything.
Read how this one runsThe Two-Year Window After Returning to India
Returning residents pass through a transitional status in which foreign income is largely outside the Indian net. The engagement establishes when the window opens and closes, and puts the transactions that benefit inside it.
Read how this one runsA Margin Defended With a Benchmarking Set That Fits the Facts
A comparables set is only as good as the screening behind it, and a rejected set takes the margin with it. The study selects the tested party first, screens on function rather than on industry code, and records why each comparable survived.
Read how this one runsOne Employee Working From Another Country
A single remote employee can create payroll registration, withholding and social security obligations in their country, and sometimes a corporate presence too. The review sets out each obligation and the order they have to be registered in.
Read how this one runsAll case studies — every published engagement in one place.
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Strategy and compliance for income, assets and families spread across borders.
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Related-party purchasing, customs value versus transfer price, and foreign-affiliate structures put trading businesses inside the s.247 documentation rules.
Goods crossing a border move the tax question from income to indirect: registration thresholds, place of supply, the customs value and the transfer price between related entities all have to agree with each other. When they do not, the adjustment arrives from two authorities at once and each one uses the other's number.
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