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Rates and deadlines

Corporate Tax Rates by Province for 2026

9% to 12%combined federal and provincial tax on small business income in 2026, depending on where the corporation does business. The range uses each rate once it applies: a Quebec corporation with a calendar year pays 12.2% for all of 2026.

By HBT AccountingSources checked October 20263 min read

One

Every province and territory, side by side

The combined columns add federal tax to the provincial rate, which is the number a Canadian controlled private corporation pays on active business income once the rate in the table applies. Ontario and Quebec show the small business rates in force after their 2026 cuts, and the two start differently. Quebec applies its cut to tax years beginning after April 29, 2026, so a corporation with a calendar year pays 3.2% (12.2% combined) for all of 2026 and 2.2% (11.2% combined) from 2027, with no proration. Ontario's cut to 2.2% began on July 1, 2026, and a year that straddles that date is prorated by the number of days at each rate.

Corporate income tax rates for 2026, with Quebec and Ontario shown at their rates after the 2026 cuts. Source: Canada Revenue Agency, Government of Alberta and Revenu Québec.
Province or territory	Small business	Small business combined	General	General combined	Limit
Alberta	2%	11%	8%	23%	$500,000
British Columbia	2%	11%	12%	27%	$500,000
Saskatchewan	1%	10%	12%	27%	$600,000
Manitoba	0%	9%	12%	27%	$500,000
Ontario	2.2%	11.2%	11.5%	26.5%	$500,000
Quebec	2.2%	11.2%	11.5%	26.5%	$500,000
New Brunswick	2.5%	11.5%	14%	29%	$500,000
Nova Scotia	1.5%	10.5%	14%	29%	$700,000
Prince Edward Island	1%	10%	15%	30%	$600,000
Newfoundland and Labrador	2%	11%	15%	30%	$500,000
Yukon	0%	9%	12%	27%	$500,000
Northwest Territories	2%	11%	11.5%	26.5%	$500,000
Nunavut	3%	12%	12%	27%	$500,000

Key points

Small business income: 9% in Manitoba and Yukon, up to 12% in Nunavut
Other income: 23% in Alberta, up to 30% in Prince Edward Island and Newfoundland and Labrador
Federal rates of 9% and 15% are included in every figure
Saskatchewan, Nova Scotia and Prince Edward Island apply their small business rate beyond the federal $500,000

Two

Reading the table

The small business rate applies to active business income up to the limit; everything else pays the general rate. Federal tax moves to its general rate after $500,000 even where a province keeps its own small business rate going further, so income in that middle band pays the federal 15% plus the provincial small business rate.

Investment income inside a corporation is taxed differently again, at higher rates with part of the tax refundable when dividends are paid, so it does not appear here.

A smiling presenter talking a small team through figures in a bright meeting room

Three

Which province's rate applies

A corporation pays tax to the province where it has a permanent establishment. One with establishments in more than one province splits its taxable income between them, generally by a formula based on the salaries and gross revenue in each, so moving the registered office alone does not move the tax.

Four

Quick answers

Which province has the lowest corporate tax rate?

On small business income, Manitoba and Yukon, at 9% combined. On other income, Alberta, at 23%.

What is the federal corporate tax rate?

9% on small business income up to $500,000 for a Canadian controlled private corporation, and 15% on other income.

Does incorporating in another province lower my tax?

Not on its own. Tax follows where the business has a permanent establishment and earns its income, not where the company was incorporated.

Five

Official sources

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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.