🇨🇦 Canada Small Business (CCPC) Tax Calculator
Calculate your Canadian-Controlled Private Corporation (CCPC) tax on active business income. See the combined federal and provincial small business tax rate on the first $500,000 of active income.
Contexte de la Regle Regionale
Canada Taux et Regles
Entrez les valeurs
Net active business income before tax (up to $500,000 for SBD)
Province where the business operates
Resultat
Entrez les valeurs ci-dessus et cliquez sur Calculer pour voir votre resultat.
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Avis : Avis : Ce calculateur utilise les regles publiques en vigueur a la date indiquee. Les resultats sont a titre informatif uniquement. Verifiez aupres des sources officielles. Derniere verification: 1 mars 2026.
Formule
CCPCs with active business income up to $500,000 qualify for the Small Business Deduction (SBD), reducing the federal rate to 9%. Each province adds its own small business rate. Income above $500K is taxed at the general corporate rate of 15% federally.
Questions Frequentes
What is the small business tax rate in Canada?
The combined federal and provincial small business rate ranges from 9% (Manitoba, where the provincial rate is 0%) to 13.5% (PEI, where the provincial rate is 4.5%) on the first $500,000 of active business income. The federal portion is 9% nationwide for qualifying CCPCs.
What qualifies as a CCPC?
A Canadian-Controlled Private Corporation must be incorporated in Canada, not be controlled directly or indirectly by non-residents or public corporations, and not have shares listed on a designated stock exchange. Most small businesses incorporated in Canada qualify.
What happens to income above $500,000?
Active business income above the $500,000 small business limit is taxed at the general corporate rate: 15% federal plus the provincial general rate (Ontario 11.5%, BC 12%, Alberta 8%). Combined rates typically range from 23% to 27% depending on province.
Should I pay myself salary or dividends?
Salary is deductible for the corporation (reduces corporate tax), creates RRSP room, and qualifies for CPP. Dividends are not deductible but benefit from the dividend tax credit at the personal level. Most owner-managers use a combination, paying enough salary to maximize RRSP room and taking the rest as dividends.
When is the SBD clawed back?
The SBD is reduced for CCPCs with taxable capital employed in Canada between $10 million and $50 million, and for those with aggregate investment income exceeding $50,000 (SBD reduced by $5 for every $1 of investment income over $50,000, eliminated at $150,000).
Is passive investment income taxed differently?
Yes. Passive income (interest, dividends, capital gains) inside a CCPC is taxed at roughly 50% initially (varies by province). A portion is refundable when paid out as dividends to shareholders. This system discourages using CCPCs as personal investment vehicles.
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