Ontario Corporate Tax Calculator 2026

An Ontario Canadian-controlled private corporation (CCPC) pays a combined 11.2% on the first 0,000 of active business income for tax years after 30 June 2026: 9% federal and 2.2% Ontario. Ontario cut its lower rate from 3.2% to 2.2% on 1 July 2026, so a year ending 31 December 2026 is blended, at about 11.7%. Income above 0,000 is taxed at 26.5%. Enter your profit below to see the tax.

How much corporate tax will you pay?

Example figures are filled in. Replace them with your own.

Your corporation

Active business income (profit before tax)$Tax yearYear ending 31 Dec 2026 (Ontario rate blended, about 2.7%)Year starting on or after 1 July 2026 (2.2%)Year ending before 1 July 2026 (3.2%)Passive investment income last year$Interest, rent and taxable capital gains earned in the company. Above ,000 it cuts the federal small business limit.Small business limit$0,000, shared among associated corporations.

Your estimate

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General information using 2026 rates, not tax advice for your situation.

Ontario corporate tax rates for 2026

• Federal small business rate: 9% on active business income up to the 0,000 business limit.
• Federal general rate: 15% on income above the limit.
• Ontario lower rate: 3.2% until 30 June 2026, then 2.2% from 1 July 2026. A tax year that straddles the date is prorated by the number of days on each side.
• Ontario general rate: 11.5%.

The Ontario rates come from the province's corporate income tax page and the federal rates from the CRA's corporation tax rates.

How passive investment income affects the rate

If your corporation earned more than ,000 of passive investment income last year, such as interest, rent or taxable capital gains, the federal government reduces your 0,000 business limit by for every above ,000. At 0,000 of passive income the federal limit is gone. Ontario does not follow this reduction, so the 2.2% Ontario rate still applies to the first 0,000. The calculator shows both.

What this calculator does not cover

• Associated corporations. Companies under common control share one 0,000 limit. Enter your share in the business limit box.
• Large corporations. The limit also shrinks when taxable capital is above million. Few owner-managed companies are affected.
• Investment income itself. Passive income inside the company is taxed at a much higher rate, part of which is refunded when the company pays taxable dividends.
• Tax when you take money out. Corporate tax is the first layer. Salary or dividends you pay yourself are taxed again on your personal return. The should I incorporate calculator compares both layers.

Common questions

What is the small business tax rate in Ontario for 2026?

For tax years after 30 June 2026, 11.2% combined on the first 0,000 of active business income: 9% federal plus 2.2% Ontario. Before 1 July 2026 the combined rate was 12.2%, and a year that includes the change date is prorated.

What is the general corporate tax rate in Ontario?

26.5% combined: 15% federal and 11.5% Ontario. It applies to active business income above the business limit and to corporations that are not CCPCs.

When is corporate tax due?

For most small CCPCs the balance is due three months after the year-end, and the T2 return six months after. Our Ontario business tax dates page lists the dates by year-end month.

See all of our calculators, or read about corporate tax returns and tax planning.

General information using 2026 federal and Ontario rates. It is not tax advice for your situation. Wealthy Wave Accounting agrees the scope and fees for any work in writing before it starts.