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    Canadian Corporate Tax Calculator (2025)

    Combined federal and provincial corporate tax for CCPCs. Federal Small Business Deduction (9%) on the first $500,000 of active business income, then 15% general rate. Includes passive-income clawback and provincial comparison.

    Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (allowances used elsewhere, reliefs, marriage allowance, scheme-specific adjustments). Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →

    Your CCPC

    2025 tax year — Canadian-controlled private corporation

    Profit from operating business activities (not investments).

    Investment income earned inside your CCPC (interest, rents, portfolio dividends, taxable capital gains).

    Associated corporations share the $500,000 federal SBD limit.

    Corporate tax payable

    Combined federal + ON provincial tax

    SBD income (first $500,000 at 12.2%)$36,600
    Federal tax$27,000
    Provincial tax$9,600
    Total corporate tax
    $36,600
    Effective rate: 12.2%
    SBD limit status: Full $500,000

    Combined federal + provincial rates

    Includes federal 9% SBD / 15% general / 38.67% investment, plus each province's CCPC rates.

    Province / Territory SBD rate General rate Passive rate
    Ontario 12.2% 26.5% 50.2%
    British Columbia 11.0% 27.0% 50.7%
    Alberta 11.0% 23.0% 46.7%
    Québec 12.2% 26.5% 50.2%
    Saskatchewan 10.0% 27.0% 50.7%
    Manitoba 9.0% 27.0% 50.7%
    New Brunswick 11.5% 29.0% 52.7%
    Nova Scotia 11.5% 29.0% 52.7%
    Prince Edward Island 10.0% 30.0% 53.7%
    Newfoundland and Labrador 11.5% 30.0% 53.7%
    Yukon 9.0% 27.0% 50.7%
    Northwest Territories 11.0% 26.5% 50.2%
    Nunavut 12.0% 27.0% 50.7%

    RDTOH and the integration of passive income

    Passive investment income inside a CCPC is taxed at roughly 50% (38.67% federal + provincial general). About 30.67% of that federal tax is refundable through the Refundable Dividend Tax On Hand (RDTOH) account when the corporation pays taxable dividends to shareholders.

    After the RDTOH refund, the permanent corporate tax on passive income is approximately 19–20%. The rest is effectively a prepayment recovered when funds are extracted via dividends — designed to preserve integration with personal tax rates on the same income.

    Assumptions used in this calculation (click to expand)

    What this calculator assumes

    • Single Canadian-Controlled Private Corporation (CCPC); no associated corporations unless entered.
    • 12-month fiscal period — short periods are not pro-rated automatically.
    • Profits are after CCA, SR&ED, and other deductions (taxable income, not revenue).
    • Active business income up to the $500,000 SBD limit attracts the small-business rate; income above attracts the general rate.

    Not included in this calculation

    • Associated-corporation sharing of the $500k SBD limit.
    • Passive investment income grind on the SBD (ITA s.125(5.1) — $50k–$150k passive band).
    • Refundable taxes (Part IV, RDTOH, ERDTOH, NERDTOH) and dividend refund mechanics.
    • Group loss utilisation (no Canadian consolidation regime — relies on amalgamation / wind-up).
    • Provincial corporate minimum tax (e.g. Ontario CMT).

    Statutory basis

    • ITA s.123 (general corporate rate)
    • ITA s.125 (Small Business Deduction)
    • ITA s.125(7) (definition of CCPC and active business income)
    How this is calculated (click to show the formula)

    Corporate tax computation

    Tax = min(ABI, $500k) × (Federal SBD rate 9% + provincial small-business rate) + Excess × (Federal general 15% + provincial general rate)

    Active business income up to $500,000 receives the Small Business Deduction (9% federal + provincial small-business rate). Income above the limit, plus passive investment income clawback territory, attracts the general rate (15% federal + provincial general rate).