Corporate Taxation and U.S. Federal Tax Rates

Investment Income¹ – 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
%
RDTOH2
Federal 38.673
Provincial
Alberta 11.504 50.17 30.67
British Columbia 12.00 50.67 30.67
Manitoba 12.00 50.67 30.67
New Brunswick 14.00 52.67 30.67
Newfoundland and Labrador 15.00 53.67 30.67
Northwest Territories 11.50 50.17 30.67
Nova Scotia 16.00 54.67 30.67
Nunavut 12.00 50.67 30.67
Ontario 11.50 50.17 30.67
Prince Edward Island 16.00 54.67 30.67
Quebec 11.605 50.27 30.67
Saskatchewan 12.00 53.67 30.67
Yukon 12.00 50.67 30.67

1 Investment income includes interest, taxable capital gains and other property income, but not deductible dividends.
2 Investment income of CCPCs gives rise to refundable dividend tax on hand (RDTOH) of 30.67%. This income tax is refundable at the rate of 38.33% when taxable dividends are paid. For taxation years started after 2018, the RDTOH is allocated between two separate accounts (eligible and non-eligible) refundable based on the nature of the dividend paid by the corporation.
3 15% rate for non-CCPCs.
4 11% since July 1, 2019 (12% before that date; average rate of 11.5% for 2019). Rate reduced to 10%, to 9% then to 8% starding January 1, 2020, 2021 and 2022 respectively.
5 Since January 1, 2019 (11.7% before that date). Rate reduced to 11.5% in 2020.
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