Ontario corporate tax calculator
Enter your expected profit and see the combined federal + Ontario corporate tax, your effective rate, and what stays in the corporation. Runs on this page — nothing is sent anywhere.
Your numbers
Active business income is roughly your revenue minus deductible expenses — the profit line, before tax. Assumes one Canadian-controlled private corporation operating in Ontario, no associated companies.
Your estimate
- Taxed at the small business rate (12.2%)
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- Taxed at the general rate (26.5%)
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- Total corporate tax
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- Effective rate
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- Left in the corporation
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We’ll send your numbers plus the two or three moves accountants usually look at next — the small business limit, owner pay, instalments. One email, no spam.
Sent. Your numbers are on their way — an accountant will follow up if there’s an obvious move in them.
How this is calculated
Canadian-controlled private corporations pay a reduced rate on their first $500,000 of active business income each year: 9% federal + 3.2% Ontario, about 12.2% combined. Active income above the limit is taxed at the general rate: 15% federal + 11.5% Ontario, about 26.5% combined. The calculator applies those two published rates to the profit you enter — nothing more exotic than that.
Three things routinely make the real answer different: associated corporations share a single $500,000 limit; passive investment income over $50,000 grinds the limit down; and investment income itself is taxed at much higher rates than active income. Rates and limits also change with federal and provincial budgets. If any of that sounds like your situation, the estimate above is the start of the conversation, not the end.
Sources: CRA corporation tax rates and Ontario corporate income tax.
This is general information, not tax advice for your situation. Get started and a Canadian accountant will give you the answer for your business.
Common questions
What tax rate does an Ontario corporation pay?
A Canadian-controlled private corporation pays a combined federal-provincial rate of about 12.2% on active business income up to the $500,000 small business limit (9% federal + 3.2% Ontario), and about 26.5% on active income above it (15% + 11.5%). Rates change with budgets — confirm the current year's figures.
Why might my real rate be higher than this estimate?
The common reasons: your corporation is associated with others (they share one $500,000 limit), you hold more than $50,000 of passive investment income (it grinds the limit down), or part of your income is investment income rather than active business income, which is taxed at much higher rates.
Is corporate tax the only tax on that profit?
No. Corporate tax is the first layer; when you pay yourself from what's left, salary or dividends add a personal layer. The split between the two is a real planning decision — see our salary vs. dividends guide, or have an accountant run your numbers.
Know the tax. Now keep more of it.
Corporate tax is the scoreboard; the game is played all year in your books. One discovery call and we quote a flat monthly price to run both.
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