Corporate Taxation and U.S. Federal Tax Rates

Investment Income¹ – 2018

This document is up to date as of August 31, 2018 and reflects the status of legislation, including proposed amendments at this date.
2018 % % combined % RDTOH2
Federal 38.673
Provincial
Alberta 12.00 50.67 30.67
British Columbia 12.004 50.67 30.67
Prince Edward Island 16.00 54.67 30.67
Manitoba 12.00 50.67 30.67
New Brunswick 14.00 52.67 30.67
Nova Scotia 16.00 54.67 30.67
Nunavut 12.00 50.67 30.67
Ontario 11.50 50.17 30.67
Quebec 11.705 50.37 30.67
Saskatchewan 12.006 50.67 30.67
Newfoundland and Labrador 15.00 53.67 30.67
Northwest Territories 11.50 50.17 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 beginning after 2018, the RDTOH will be 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 Since January 1, 2018 (11% before that date). 5 Since January 1, 2018 (11.8% before that date). Rate reduced by 0.1% per year, to reach 11.5% on January 1, 2020. 6 Since January 1, 2018 (11.5% before that date).

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