QuickBooks for Business Tax Returns in Canada
6 min
Taxes, payroll and business
Corporate income tax
Estimate corporate tax, retained profit and savings from the small business deduction.
2026 rates · Official sources checked October 1, 2026
Your business
CAD
Deductions and investment income
CAD
CAD
CAD
CAD
CAD
Investments: gains are 50% taxable. CCPC federal tax on interest and taxable gains is 38⅔% before refunds. Canadian dividends from non-connected corporations are deducted from taxable income and subject to 38⅓% Part IV tax. No dividend refund is anticipated. Deductions above reduce active profit only.
Small business limits
CAD
CAD
Enter limits after allocation among associated corporations, reductions for taxable capital and prior-year investment income, and short-year proration. Defaults assume a full year with no adjustments.
Fiscal year beginning in 2026. For a short year, adjust available business limits.
Ontario: provincial small business rate falls from 3.2% to 2.2% July 1, 2026, prorated by days in your fiscal year.
Canadian-resident corporation with an establishment in one province. Excludes personal services businesses, sector-specific regimes, credits, losses and shareholder tax.
Your result
Estimated tax before dividend refunds
$35,088
- Net active profit
- $300,000
- Federal tax on active profit
- $27,000
- Federal investment tax
- $0
- Part IV · dividends received
- $0
- Provincial tax
- $8,088
- Total tax
- $35,088
- Retained after-tax profit
- $264,912
- Small business deduction savings
- $44,412
Effective tax rate on total profit: 11.696%
Active profit at federal / provincial small business rate: $300,000 / $300,000.
Received dividends and the non-taxable share of gains are included in retained profit.
Method and assumptions
Enter limits after allocation among associated corporations, reductions for taxable capital and prior-year investment income, and short-year proration. Defaults assume a full year with no adjustments.
Quebec: enter your SBD percentage after paid-hours or primary/manufacturing activity tests (0% if ineligible, 100% if fully eligible, intermediate value for a reduction). Full-SBD rate is 3.2%, or 2.2% for years beginning after April 29, 2026.
Investments: gains are 50% taxable. CCPC federal tax on interest and taxable gains is 38⅔% before refunds. Canadian dividends from non-connected corporations are deducted from taxable income and subject to 38⅓% Part IV tax. No dividend refund is anticipated. Deductions above reduce active profit only.
Canadian-resident corporation with an establishment in one province. Excludes personal services businesses, sector-specific regimes, credits, losses and shareholder tax.
Rates by province and territory
| Province / territory | Small business | General | Provincial limit |
|---|---|---|---|
| Alberta | 11% | 23% | $500,000 |
| British Columbia | 11% | 27% | $500,000 |
| Manitoba | 9% | 27% | $500,000 |
| New Brunswick | 11.5% | 29% | $500,000 |
| Newfoundland and Labrador | 11% | 30% | $500,000 |
| Northwest Territories | 11% | 26.5% | $500,000 |
| Nova Scotia | 10.5% | 29% | $700,000 |
| Nunavut | 12% | 27% | $500,000 |
| Ontario | 11.696% | 26.5% | $500,000 |
| Prince Edward Island | 10% | 30% | $600,000 |
| Quebec | 12.2% | 26.5% | $500,000 |
| Saskatchewan | 10% | 27% | $600,000 |
| Yukon | 9% | 27% | $500,000 |
Quebec: enter your SBD percentage after paid-hours or primary/manufacturing activity tests (0% if ineligible, 100% if fully eligible, intermediate value for a reduction). Full-SBD rate is 3.2%, or 2.2% for years beginning after April 29, 2026.
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