Income Tax Rates

The tables below show the income tax rates for financial institutions, oil refinery corporations and all other types of corporations.

Income tax rates for corporations (other than financial institutions and oil refinery corporations) in effect since January 1, 2009
Maximum income tax rate 11.9%
Small business deduction (SBD) 3.9%
Minimum income tax rate 8%
Income tax rates for financial institutions and oil refinery corporations in effect since June 1, 2007
Maximum income tax rate 11.9%
Small business deduction (SBD) 3.9%
Minimum income tax rate 8%

Small business deduction

The small business deduction (SBD) can be claimed by a Canadian-controlled private corporation (CCPC) with paid-up capital of less than $15 million. Such a corporation can thus benefit from a reduced tax rate on the first $500,000 (known as the business limit) of its annual income from an eligible business carried on in Canada.

Business limit of an associated corporation

Where, during a taxation year, a CCPC is associated with one or more other corporations that are either resident in Canada or have an establishment in Canada, all those corporations must agree to allocate the annual business limit between them by completing form CO-771.1.3, Entente entre sociétés associées relative au plafond des affaires et calcul de ce plafond (see courtesy translation CO-771.1.3-T).

Last Updated: 2013-08-01