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2012 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 2012.  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 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 corporate tax rate of 28% for PSBs.

2012 Corporate Income Tax Rates
  General Small Business Business Limit
Federal (1) 15% 11% $500,000
Alberta 10% 3% $500,000
BC (3) 10% 2.5% $500,000
Manitoba 12% 0% $400,000
New Brunswick (5) 10% 4.5% $500,000
Newfoundland & Labrador 14% 4% $500,000 (2)
Nova Scotia (6) 16% 4% $400,000
Northwest Territories 11.5% 4% $500,000 (2)
Nunavut 12% 4% $500,000 (2)
Ontario (4) 11.5% 4.5% $500,000
Prince Edward Island 16% 1% $500,000 (2)
Quebec 11.9% 8% $500,000
Saskatchewan 12% 2% $500,000
Yukon 15% 4% $500,000
  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

     

  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.

  1. 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 - deferred by 2012 Budget
    4. 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.

     

  2. 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 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.

  3. As per the NS 2011 Budget, the small business income tax rate was reduced from 4.5% to 4% effective January 1, 2012.  As per the NS 2012 Budget, the rate will be reduced to 3.5% effective January 1, 2013.