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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 / TerritorySBD rateGeneral ratePassive rate
    Ontario12.2%26.5%50.2%
    British Columbia11.0%27.0%50.7%
    Alberta11.0%23.0%46.7%
    Québec12.2%26.5%50.2%
    Saskatchewan10.0%27.0%50.7%
    Manitoba9.0%27.0%50.7%
    New Brunswick11.5%29.0%52.7%
    Nova Scotia11.5%29.0%52.7%
    Prince Edward Island10.0%30.0%53.7%
    Newfoundland and Labrador11.5%30.0%53.7%
    Yukon9.0%27.0%50.7%
    Northwest Territories11.0%26.5%50.2%
    Nunavut12.0%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 UK-resident close company; no associated companies unless entered.
    • 12-month accounting period — short periods are not pro-rated automatically.
    • Profits are after R&D, capital allowances, and other deductions (taxable profit, not turnover).
    • Augmented profits = taxable profits (no franked investment income modelled).

    Not included in this calculation

    • Associated companies dilution of the $50,000 / $250,000 limits.
    • Short accounting periods or change of accounting date.
    • Group relief, loss carry-back, or consortium relief.
    • Patent Box, R&D super-deduction interactions (R&D has its own calculator).
    • Diverted Profits Tax and corporate interest restriction.

    Statutory basis

    • CTA 2010 s.18A (small profits rate)
    • CTA 2010 ss.18B–18N (marginal relief)
    • CTA 2009 (charge and computation)
    How this is calculated (click to show the formula)

    Marginal relief formula

    CT = (Profit × Main rate) − (Upper limit − Profit) × (Profit / Augmented) × Marginal relief fraction

    Where Marginal relief fraction = 3/200 for the standard 25%/19% pairing. Profits ≤ $50,000 pay the small profits rate (19%); profits ≥ $250,000 pay the main rate (25%); profits between get marginal relief.