Corporate Tax Calculator Canada 2025 | Accurate Business Tax Estimates

Corporate Tax Calculator – Canada 2025

Calculate your corporate tax obligations accurately with up-to-date 2025 rates

Calculate Your Corporate Taxes

Enter your business information to calculate your corporate tax obligations in Canada.

Business Information

Tax Information

CCPCs (Canadian-Controlled Private Corporations) benefit from lower tax rates on the first $500,000 of active business income. Investment income and capital gains are taxed at higher rates.

Your Tax Results

Enter your business information and click “Calculate Tax” to see your results.

Calculating your taxes…

2025 Canadian Corporate Tax Rates

Below are the projected corporate tax rates for 2025 across Canadian provinces and territories:

Province/Territory CCPC Small Business Rate General Corporate Rate SBD Limit
Ontario 3.2% 11.5% $500,000
Alberta 2.0% 8.0% $500,000
British Columbia 2.0% 12.0% $500,000
Manitoba 0.0% 12.0% $500,000
New Brunswick 2.5% 14.0% $500,000
Newfoundland and Labrador 2.5% 15.0% $500,000
Nova Scotia 1.5% 14.0% $700,000
Prince Edward Island 1.0% 15.0% $600,000
Quebec 3.2% 11.5% $500,000
Saskatchewan 1.0% 12.0% $600,000
Northwest Territories 2.0% 11.5% $500,000
Nunavut 3.0% 12.0% $500,000
Yukon 0.0% 12.0% $500,000

Federal Tax Rates

Small Business Rate: 9.0% | General Corporate Rate: 15.0% | Investment Income Rate: 38.67%

Frequently Asked Questions

What is a CCPC? +
A CCPC (Canadian-Controlled Private Corporation) is a private corporation that is resident in Canada and not controlled directly or indirectly by one or more non-resident persons or public corporations. CCPCs are eligible for the small business deduction on the first $500,000 of active business income.
What is the Small Business Deduction (SBD)? +
The Small Business Deduction (SBD) is a tax reduction available to CCPCs on the first $500,000 of active business income. This deduction significantly lowers the corporate tax rate for eligible businesses, making it easier for small businesses to grow and reinvest in their operations.
How are investment income and capital gains taxed? +
Investment income (such as interest, rent, and foreign dividends) is taxed at a higher rate than active business income. Capital gains are taxed differently – only 50% of capital gains are included in taxable income. Both types of income are subject to special refundable tax mechanisms (RDTOH) that provide tax refunds when dividends are paid to shareholders.
What is RDTOH? +
RDTOH (Refundable Dividend Tax on Hand) is a mechanism that allows corporations to recover part of the tax paid on investment income when they pay dividends to shareholders. There are two types: Eligible RDTOH (for portfolio dividends) and Non-Eligible RDTOH (for other investment income and certain capital gains).
What is the Capital Dividend Account (CDA)? +
The Capital Dividend Account (CDA) is a notional account that tracks the tax-free portion of capital gains realized by a private corporation. The CDA balance can be distributed to shareholders as tax-free capital dividends, making it a valuable tax planning tool for business owners.
When are corporate tax returns due in Canada? +
Corporate tax returns are generally due six months after the end of the corporation’s fiscal year. However, any taxes owing must be paid within two or three months (depending on the type of corporation) after the fiscal year-end to avoid interest charges.
Are these tax rates final for 2025? +
The tax rates shown are projections based on current legislation and announced changes. Tax rates can be subject to change through federal or provincial budgets. We recommend consulting with a tax professional or checking the Canada Revenue Agency website for the most current information.

Disclaimer: This calculator is for informational purposes only and should not be considered as tax advice. Tax rates and regulations may change. Please consult with a qualified tax professional for personalized advice.

Last updated: October 2025