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
Table C5 – Capital Cost Allowance Rates 2025
| Description of Property | Rate1 | Class |
|---|---|---|
| Buildings, including component parts | 4% | 1 |
| Purpose-built residential rental constructed between April 16, 2024 and December 31, 2030 2 | 10% | |
| Buildings used 90% + for manufacturing and processing (separate class)3 | 100%4 | |
| Buildings acquired on or after March 19, 2007 and used 90% + for non residential purposes (separate class)3 | 6% | |
| Fences, greenhouses, wood buildings (farming and fishing) | 10% | 6 |
| Assets not included in any other class such as accessories, equipment, furniture, photocopiers, telephones, tools costing more than $500 and outdoor advertising panels | 20% | 8 |
| Automobiles, panel trucks, trucks, tractors, trailers (except for class 10.1)5 | 30% | 10 |
| Passenger vehicles, the cost of which is equal to or exceeds prescribed amounts ($37,000 + tax – see Section V)5 | 30% | 10.1 |
| Application software, small tools, cutlery, linen, uniforms, moulds, medical instruments costing less than $500 and rented videotape | 100% | 12 |
| Leasehold improvements | Lease term6 | 13 |
| Taxis, automobiles acquired for short-term leasing and coin-operated video game5 | 40% | 16 |
| Trucks and tractors designed for hauling freight5 | 40%7 | 16 |
| Parking areas or similar surface construction | 8% | 17 |
| Electric charging stations | 100%8 | 43.19 |
| Data network infrastructure equipment | 100%10 | 46 |
| Computer equipment, system software and related equipment | 100%11 | 50 |
| Manufacturing or processing equipment acquired after 2015 and before 2026 | 100%8 | 53 |
| Other zero emission vehicles or automotive equipment12 | 100%8 | 56 |
** 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.
- Rates are declining balance unless otherwise indicated. Property acquired during the year generally qualifies for half of the capital cost allowance. However, this measure is suspended for property acquired and available for use before 2028. Furthermore, property acquired after 2024 and that becomes available for use before 2030 generally qualifies for an enhanced deduction in the first year of 150% of the deduction normally granted, at the rate applicable to the class (without half rate). This rate does not apply to property that is fully deductible in the first year.
- New building located in Canada that contains at least four residential units or at least ten private rooms or suites, available for use before 2036. The housing units must not be made available to travellers or vacationers and must be rented or offered for rent for continuous periods of at least 28 consecutive days. The conversion of a non-residential building into a residential building or an addition to a residential building are eligible if the conditions are met, but renovations to existing residential buildings are not.
- Includes additions and modifications made to a building included in a separate class even though the building was acquired before March 19, 2007 (date this measure came into effect).
- For buildings acquired on or after November 4, 2025 and that will become ready for use before 2030 (rate of 10% before this date, reduced rate of 75% in 2030 and 2031 and rate of 55% in 2032 and 2033).
- Eligible zero-emission vehicles classified under classes 54 (ceiling $61,000 + tax) or 55, according to their characteristics, are 100% deductible in the first year if they are available for use before 2030 (rate reduced to 75% in 2030 and 2031 and to 55% in 2032 and 2033).
- Straight-line capital cost allowance over the lease term (including the first renewal period), for a minimum of 5 years and a maximum of 40 years.
- 60% rate in Quebec for new vehicles.
- For property acquired and available for use before 2030 (reduced rate of 75% in 2030 and 2031 and 55% in 2032 and 2033).
- Eligible property acquired before 2025 is included in Class 43.2 even if it becomes available for use after that date. As of 2025, all such property is included in Class 43.1.
- For property acquired and available for use before 2027 (30% after 2026).
- For property acquired and available for use before 2027 (55% after 2026).
- Includes automotive equipment, other than an automotive vehicle designed or adapted to be used on highways and streets (class 54 and 55 property) that is fully electric or powered by hydrogen or a combination of the two.
4- Corporate Taxation and U.S. Federal Tax Rates
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 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 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.