The following table shows the general and small business corporate income tax rates federally and for each province and territory for 2025.
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 $50 million. This phase-out of the small business deduction is also in effect in some provinces.
The federal 2018 budget implemented changes to reduce the business limit based on the investment income of a CCPC, for taxation years beginning after 2018.
The federal general rate is net of the 10% federal tax abatement and 13% (2012 and later years) general rate reduction.
The corporate tax rate for personal services businesses (PSBs) has been 33% since January 1, 2016. If you are incorporated, provide services, and employ 5 or fewer employees, you may be a personal services business (incorporated employee), which means higher corporate tax rates and limited expense deductions.
| 2025 Corporate Income Tax Rates | ||||
|---|---|---|---|---|
| Active Business Income | Investment Income CCPC |
|||
| General | Small
Business (CCPC) |
Business Limit |
||
| Federal | 15% | 9% | $500,000 | 38.7% |
| Alberta | 8% | 2% | $500,000 | 8% |
| BC | 12% | 2% | $500,000 | 12% |
| Manitoba | 12% | zero% | $500,000 | 12% |
| New Brunswick | 14% | 2.5% | $500,000 | 14% |
| Newfoundland & Labrador (1) | 15% | 2.5% | $500,000 | 15% |
| Nova Scotia (2) | 14% | 2.5% / 1.5% | $500,000 | 14% |
| Northwest Territories (1) | 11.5% | 2% | $500,000 | 11.5% |
| Nunavut (1) | 12% | 3% | $500,000 | 12% |
| Ontario | 11.5% | 3.2% | $500,000 | 11.5% |
| Prince Edward Island (1)(5) | 16% / 15% | 1% | $500,000 / $600,000 |
16% |
| Quebec (3) | 11.5% | 3.2% | $500,000 | 11.5% |
| Saskatchewan (4) | 12% | 1% | $600,000 | 12% |
| Yukon | 12% | zero% | $500,000 | 12% |
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) Nova Scotia provides a corporate tax holiday under s. 42 of their Income Tax Act for the first 3 taxation years of a new small business after incorporation. See New Small Business Tax Deduction on the Nova Scotia website. The Nova Scotia 2025 Budget reduced the small business tax rate from 2.5% to 1.5% effective April 1, 2025. The non-eligible dividend tax credit rate was reduced to 1.5% effective January 1, 2025.
(3) Quebec has more "eligibility requirements" for the SBD than other provinces. See Small Business Deduction (in French only).
(4) Saskatchewan's December 2024 Affordability Measures included the 2024 and later small business corporate income tax rate staying at 1%. This also resulted in cancellations of the change to the 2025 and later non-eligible dividend tax credit rates, and a change to the 2025 marginal tax rate for non-eligible dividends.
(5) Prince Edward Island's 2025 Budget announced that effective July 1, 2025, the general corporate income tax rate would be reduced by 1% to 15% and the business limit increased to $600,000.
Alberta 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
Saskatchewan corporate income tax
Revised: October 30, 2025