Free calculator · 2026 rates

Ontario Corporate Tax Calculator (CCPC) 2026

Estimate corporate income tax for an Ontario Canadian-controlled private corporation on active business income, including the Small Business Deduction.

Estimated corporate income tax

Effective rate: 0%

Retained after taxFederalOntario

Income at small business rate (federal)$0

Income at general rate (federal)$0

Federal business limit after grind$0

Federal tax$0

Ontario tax (small business rate 2.2%)$0

Retained after tax$0

Active business income of a CCPC only. Ontario does not apply the federal passive income grind. Investment income, the taxable capital grind and refundable taxes are not modelled.

How this calculator works

Federal: 9% on active business income up to the business limit ($500,000), 15% above it.
Ontario: 2.2% small business rate from July 1, 2026 (3.2% before, prorated by days), 11.5% general rate. Combined: 11.2% and 26.5%.
The federal business limit is reduced by $5 for every $1 of prior-year passive income (AAII) over $50,000; Ontario does not apply this grind.

Important

Results are estimates for general information, based on 2026 federal and Ontario figures verified October 27, 2026. Federal Budget 2026 (November 5, 2026) may change some amounts. Your actual tax depends on credits, deductions and circumstances not captured here.

Get help with Corporate Tax (T2)

Frequently asked questions

What is the corporate tax rate in Ontario for small businesses?

The combined federal and Ontario rate on the first $500,000 of active business income is 11.2% from July 1, 2026, down from 12.2%.

Does investment income get the small business rate?

No. Passive investment income is taxed at much higher rates in a CCPC, with part refundable when taxable dividends are paid.

Who shares the $500,000 business limit?

Associated corporations must share a single business limit among them.

Related reading

A team gathered around a wooden table reviewing printed charts and financial reports

Corporate TaxOctober 20, 2026· 7 min read

The Small Business Deduction in Canada: Who Qualifies and How It Works in 2026

The small business deduction cuts tax on a CCPC's first $500,000 of active business income. Learn who qualifies, the grinds and Ontario's 2026 rate cut.

Read article

Looking up at tall glass office towers against the sky

Business AdvisoryOctober 17, 2026· 7 min read

Should You Incorporate Your Business in Ontario? A 2026 Guide

Should you incorporate in Ontario? Compare tax deferral, costs, the LCGE, TOSI, professional corporations and the section 85 rollover before you decide in 2026.