Corporate Taxation and U.S. Federal Tax Rates

Business Income Eligible for SBD¹ – 2019

 

This document is up to date as of August 1, 2019 and reflects the status of legislation, including proposed amendments at this date.

2019 % % 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 3.00 12.00
Northwest Territories 4.00 13.00
Nova Scotia 3.00 12.00
Nunavut 3.503 12.50
Ontario 3.50 12.50
Prince Edward Island 3.504 12.50
Quebec
without MPP / with MPP 6.005 / 4.006 15.00 / 13.00
Saskachewan 2.00 11.007
Yukon
without MPP / with MPP 2.00 / 1.50 11.00 / 10.50

1 $500,000 eligible for the SBD for federal purposes and all provinces and territories, except in Saskatchewan ($600,000). 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 $15M. For taxation years started after 2018, 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). For greater clarity, both reductions apply in parallel so that the SBD is reduced by the greater of the two amounts.
2 Since January 1, 2019 (10% before that date).
3 3% since July 1, 2019 (4% before that date; average rate of 3.5% for 2019).
4 Since January 1, 2019 (4% before that date). Rate reduced to 3% in 2020.
5 Since January 1, 2019 (7% since March 28, 2018 and 8% before that date). Rate reduced to 5% in 2020 and to 4% in 2021.
6 Rate reduced up to 4% for SMEs in primary and manufacturing sectors, based on their proportion of activities in these sectors.
7 Combined rate of 11% on the fi rst $500,000 of income that qualifi es for the SBD and rate of 17% on the next $100,000 of qualifying income, because of the gap between the federal-provincial ceilings.
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