What Is the Corporate Tax Rate in Canada?

The corporate tax rate in Canada, for an Ontario corporation, is the federal rate plus the Ontario rate. Income that qualifies for the small business deduction is taxed at 9 percent federal. Ontario’s lower rate on that income is 2.2 percent on or after 1 July 2026 and was 3.2 percent before that date, so the combined rate is 11.2 percent or 12.2 percent. Other taxable income is 15 percent federal plus 11.5 percent Ontario, 26.5 percent combined. A taxation year that includes 1 July 2026 uses both Ontario lower rates, counted by the days in each period.

The table and the business limit

The table on this page is that set of rates. The business limit and the exceptions are on the CRA table linked below the table. This article does not restate the business-limit dollar amount. Kennedy Tax & Accounting Inc. applies the rate that fits the year when it prepares the T2. The fee for that return is quoted.

Where these rates come from

Sources are the CRA corporation tax rates page and the Ontario corporate income tax page, checked 27 October 2026.

Work with the Scarborough office

The only office is in Scarborough, near Kennedy Station. You can visit or send the documents. English, Bengali and Tamil are spoken. Manoranjan (Mano) Talukder, CPA, leads the firm, which has worked since 2010. Personal returns start at $49.99 + HST. Other files are quoted first.