What is the federal corporate tax rate in Canada for 2024?

The federal general corporate income tax rate is 15% (after the 10% federal tax abatement that applies to income earned in Canada). Canadian-controlled private corporations (CCPCs) benefit from the small business deduction, reducing the rate to 9% on the first $500,000 of qualifying active business income.

Who qualifies for the Small Business Deduction?

Canadian-controlled private corporations (CCPCs) with active business income qualify. The annual limit is $500,000 federally (2024), but this is shared among associated corporations. The limit also phases out for CCPCs with taxable capital employed in Canada exceeding $10 million. Passive investment income above $50,000 also reduces the SBD limit.

How is the $500,000 small business limit applied?

The first $500,000 of active business income is taxed at the small business rate (federal 9%). Income above $500,000 is taxed at the general rate (federal 15%). This calculator applies the split at the federal $500,000 threshold. Provincial small business limits may differ; the tool uses each province's own limit where known.

Does this calculator include provincial tax?

Yes. All 13 provinces and territories are included with their 2024 general and small business corporate rates. The tool displays the combined federal and provincial tax, as well as the separate federal and provincial amounts.

What is not included in this calculator?

This tool does not cover the refundable portion of tax on investment income (Part IV tax), the general rate income pool (GRIP), the capital dividend account, surtaxes on financial institutions, resource allowances, or group/associated company restrictions on the small business limit. Consult a qualified tax adviser for complex structures.

What is the combined federal and provincial small business rate for Ontario?

In Ontario (2024), the provincial small business rate is 3.2% and the general rate is 11.5%. Combined with the federal rates, a CCPC in Ontario pays approximately 12.2% on the first $500,000 (9% + 3.2%) and 26.5% on income above $500,000 (15% + 11.5%).

Canada Corporate Tax Calculator

Name: Canada Corporate Tax Calculator
Availability: InStock
Author: Nham Vu

Enter your corporation's taxable income and province to instantly calculate 2024 federal and provincial corporate tax using the general rate and small business deduction.

Corporation Details

Province / Territory

Taxable Income

Net income for tax purposes (T2 Schedule 1 line 300).

Corporation Type

CCPC (qualifies for SBD) General corporation

CCPC = Canadian-controlled private corporation. General rate applies to public companies and non-CCPCs.

2024 federal rates: 9% on first $500,000 (SBD) + 15% on income above $500,000. Provincial rates vary by jurisdiction.

Enter taxable income to see your Canadian corporate tax breakdown.

Total Corporate Tax Liability

Federal + Provincial

Effective Rate

0.00%

Federal Tax

After-Tax Income

Federal vs Provincial Tax Split

Federal

Provincial

Item	Amount	Rate

Estimate only — 2024 rates. Does not include refundable taxes, GRIP, associated company rules, or surtaxes. Consult a qualified tax adviser for personal advice.

Summary

Enter your corporation's taxable income and province to instantly calculate 2024 federal and provincial corporate tax using the general rate and small business deduction.

How it works

Select your province or territory of incorporation.
Enter the corporation's taxable income for the year.
Indicate whether the corporation qualifies for the Small Business Deduction (CCPC with active business income).
The calculator splits income at the $500,000 federal small business limit.
Federal tax is computed at 9% (small business) or 15% (general) on each slice.
Provincial tax is added at the province's applicable small business or general rate.
Total tax, effective rate, and after-tax income are displayed in a detailed breakdown.

Use cases

Estimating annual corporate tax instalments for a CCPC.
Comparing after-tax income across provinces when deciding where to incorporate.
Modeling the tax cost of retaining income in a corporation versus paying it as salary.
Planning the timing of income to stay within the small business limit.
Understanding the combined federal and provincial corporate tax burden.
Preparing financial projections for a business plan or investor deck.
Teaching corporate tax concepts to accounting students or entrepreneurs.
Quick sanity-check before filing a T2 corporate income tax return.

Frequently Asked Questions

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Last updated: 2026-05-23 · Reviewed by Nham Vu