2020 Corporate Tax Rates Update

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January 10, 2020
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< 1 min article

As we begin a new year, it’s wise to stay informed about the latest tax rates as it is a critical component to your company’s bottom line. Here are the latest combined 2020 corporate tax rates by provinces and territories: 

Small Business Income up to $500,000

Active Business Income

Investment Income

British Columbia

11.0%

27.0%

50.7%

Alberta

11.0%

25.0%

48.7%

Saskatchewan 11.0% 27.0% 50.7%
Manitoba 9.0% 27.0% 50.7%
Ontario 12.5% 26.5% 50.2%
Quebec 14.0% 26.5% 50.2%
New Brunswick 11.5% 29.0% 52.7%
Nova Scotia 12.0% 31.0% 54.7%
Prince Edward Island 12.0% 31.0% 54.7%
Newfoundland and Labrador 12.0% 30.0% 53.7%
Yukon 11.0% 27.0% 50.7%
Northwest Territories 13.0% 26.5% 50.2%
Nunavut 12.0% 27.0% 50.7%

 

The tax rates for “Small Business Income up to $500,000” applies to active business income up to $500,000 earned by a Canadian-controlled private corporation (CCPC).

The tax rates for “Active Business Income” applies to active business income in excess of $500,000 earned by a Canadian-controlled private corporation (CCPC) and non-CCPC. 

The tax rates for “Investment Income” applies to investment income earned by a CCPC, other than capital gains and dividends received from Canadian corporations. 

In general, a corporation is a CCPC if the corporation is a private corporation that is operating in Canada, provided it is not controlled by one or more non-resident persons.

Questions about the latest corporate tax rates? Book and call and we'll be happy to help.
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