Table C2 – Business Income Not Eligible For the SBD
8 Rate of 7.5% on zero-emission technology manufacturing income. The rate will increase gradually as of 2032. A personal services business is subject to a tax
Table C1 – Business Income Eligible For SBD
| 20251 | % | Combined % |
|---|---|---|
| Federal | 9.002 | |
| Provincial | ||
| Alberta | 2.00 | 11.00 |
| British Columbia | 2.00 | 11.00 |
| Manitoba | 0.00 | 9.00 |
| New Brunswick | 2.50 | 11.50 |
| Newfoundland and Labrador | 2.50 | 11.50 |
| Northwest Territories | 2.00 | 11.00 |
| Nova Scotia3 | 1.754 | 10.755 |
| Nunavut | 3.00 | 12.00 |
| Ontario | 3.20 | 12.20 |
| Prince Edward Island | 1.00 | 10.006 |
| Quebec | 3.20 | 12.20 |
| Saskatchewan | 1.00 | 10.007 |
| Yukon: without MPP/with MPP | 0.00 | 9.00 |
- $500,000 eligible for the SBD for federal purposes and provinces and territories, except in Saskatchewan ($600,000), in Nova Scotia (ceiling increased to $700,000 since April 1, 2025) and in Prince Edward Island (ceiling increased to $600,000 since July 1, 2025). In all jurisdictions, the SBD is progressively reduced when paid-up/taxable capital of all associated corporations is greater than $10M and is eliminated when it reaches $50M. The SBD is also reduced when the adjusted aggregate investment income of all associated corporations is greater than $50,000 and becomes nil when it reaches $150,000 (not applicable in Ontario and New Brunswick). Both reductions apply in parallel so that the SBD is reduced by the greater of the two amounts.
- Rate of 4.5% on zero-emission technology manufacturing income. The rate will increase gradually as of 2032.
- Subject to certain conditions, a new small business can benefit from a corporate tax rate reduction in its first three taxation years. Refer to the Nova Scotia corporate tax reduction for new small businesses page for details..
- Rate reduced from 2.5% to 1.5% since April 1, 2025 (average rate of 1.75% for 2025).
- Combined rate reduced from 11.5% to 10.5% since April 1, 2025, on the first $500,000 of income that qualifies for the SBD (average rate of 10.75% for 2025); combined rate of 16.5% from that date on the next $200,000 of qualifying income due to the increase of the provincial ceiling.
- On the first $500,000 of income that qualifies for the SBD. Combined rate of 16% since July 1, 2025 on the next $100,000 of qualifying income due to the increase of the provincial ceiling.
- Rate of 10% on the first $500,000 of income that qualifies for the SBD. Rate of 16% on the next $100,000 of qualifying income, because of the gap between the federal-provincial ceilings.
4- Corporate Taxation and U.S. Federal Tax Rates
Table C3 – Investment Income
20251 % Combined % % RDTI2 Federal 38.673 Provincial Alberta 8.00 46.67 30.67 British Columbia 12.00 50.67 30.67 Manitoba 12.00 50.67 30.67 New Brunswick
Table C4 – SR&ED Tax Credits
** The measures presented in this table take into account measures announced as of the date of publication including certain measures which cannot be administered by the tax authorities on that date.
Table C5 – Capital Cost Allowance Rates 2025
** The measures presented in this table take into account measures announced as of the date of publication including certain measures which cannot be administered by the tax authorities on that date.
Table S1 – Sales Tax 2025
1 Provincial component of HST.
Table US1 – U.S. Federal Tax – Individuals 2025
Single individual $11,925 or less 10% of taxable income $11,926 – $48,475 $1,193 + 12% on next $36,550 $48,476 – $103,350 $5,579 + 22% on next $54,875
Table US2 – U.S. Federal Tax – Corporations – 2025
Corporations are generally subject to a fixed tax rate of 21% applicable to all of their taxable income.