Canada Corporate Tax Calculator 2026 (26.5%)
Estimate corporate income tax in Canada on any profit: tax due, effective rate and profit after tax, with the 26.5% headline rate and the reduced rates in force in September 2026.
The calculation runs in your browser: nothing you type is uploaded or stored. Results are estimates for planning, not tax advice. Check your own case with your adviser or the tax authority.
Corporate tax rules in Canada
Canadian-controlled private corporation, active business income (federal 9% + Ontario 2.2% on the first CAD 500,000): 11.2% on the first CA$500,000.00 and 26.5% above CA$500,000.00. General rate (federal 15% + Ontario 11.5%): a flat 26.5% on taxable profit.
Rates in force on 30 September 2026 (Ontario small-business rate 2.2% from 1 July 2026)
Who qualifies for the lower rates
- CCPC throughout the year only; the $500,000 business limit is shared by associated corporations (Schedule 23).
- Business limit reduced as taxable capital of the associated group goes from $10M to $50M (tax years from 7 April 2022; $10M-$15M before).
- Business limit reduced as passive investment income goes from $50,000 to $150,000 (nil above $150,000).
- Net 15% = 38% basic - 10% provincial abatement - 13% general rate reduction.
Local taxes and minimum taxes
Large multinational groups (revenue EUR 750 million or more) are subject to Canada's 15% global minimum tax; not modelled here.
Filing and payment
The T2 return is due six months after the tax year-end; the balance of tax is generally due two months after year-end (three months for eligible CCPCs).
How the calculation works
The calculator applies the rates in the order the law does: band by band where a country taxes profit in slices, or one rate to the whole profit where eligibility decides the rate. Surcharges are applied to the tax, local business taxes to the profit. The result is an estimate: it does not include loss relief, tax credits, deferred tax or group rules.
Frequently asked questions
What is the corporate tax rate in Canada?
Canadian-controlled private corporation, active business income (federal 9% + Ontario 2.2% on the first CAD 500,000): 11.2% on the first CA$500,000.00 and 26.5% above CA$500,000.00. General rate (federal 15% + Ontario 11.5%): a flat 26.5% on taxable profit.
How much corporate tax is due on a profit of CA$500,000.00?
On a taxable profit of CA$500,000.00 this calculator estimates CA$132,500.00 of tax, an effective rate of 26.5%, before any credits, losses or local adjustments. Change the inputs above to model your own figures.
Who qualifies for the reduced rates?
CCPC throughout the year only; the $500,000 business limit is shared by associated corporations (Schedule 23). Business limit reduced as taxable capital of the associated group goes from $10M to $50M (tax years from 7 April 2022; $10M-$15M before). Business limit reduced as passive investment income goes from $50,000 to $150,000 (nil above $150,000). Net 15% = 38% basic - 10% provincial abatement - 13% general rate reduction.
When is the corporate tax return due?
The T2 return is due six months after the tax year-end; the balance of tax is generally due two months after year-end (three months for eligible CCPCs).
Does the estimate include local taxes and minimum taxes?
Large multinational groups (revenue EUR 750 million or more) are subject to Canada's 15% global minimum tax; not modelled here.
Is the result my exact tax bill?
No. It applies the statutory rates to the profit you enter. Your real bill depends on how taxable profit is computed (non-deductible costs, losses brought forward, allowances), on credits and on advance payments already made.
Are these rates up to date?
They were checked against the Canada Revenue Agency and the other sources listed on this page on 30 September 2026. If a rate changes, type the new one into the rate field and the result updates at once.
Sources
- Corporation tax rates (modified 2025-05-30) — Canada Revenue Agency
- Provincial and territorial corporation tax — Canada Revenue Agency
- What's new for corporations (modified 2026-06-12) — Canada Revenue Agency
- T2 Corporation Income Tax Guide, chapter 4 - small business deduction (modified 2026-05-28) — Canada Revenue Agency
- Corporate income tax (updated 2026-04-27) — Government of Ontario
- Information Bulletin 2026-3: Increase in the small business deduction rate (29 April 2026) — Ministère des Finances du Québec
- Budget 2026 - A Plan for Lower Taxes — Government of Newfoundland and Labrador
- Tax and levy rates and prescribed interest rates — Government of Alberta
- Yukon territorial corporation tax (modified 2025-05-21) — Canada Revenue Agency
- EY - Provincial corporate income tax rates for active business income 2026 (to 15 June 2026) - secondary, cross-check only — EY Canada
Rates, bands and thresholds were checked against these sources on 30 September 2026. Tax rules change: if a rate has moved, edit it in the calculator above.
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