- Visit the Canada Revenue Agency (CRA) webpage titled Ontario – Provincial corporation tax
- Contact the CRA:
- 1 800 959-5525 English
- 1 800 959-7775 French
- 1 800 665-0354 for teletypewriter (TTY)
The Canada Revenue Agency (CRA) administers Ontario's corporate income tax, capital tax, corporate minimum tax, and the special additional tax on life insurers.
The tax rates below apply to taxable income allocated to Ontario.
Basic Corporate Income Tax (CIT) Rate
The Ontario basic CIT rate is outlined in the table below.
| Basic CIT Rate | Applicable to proportionate number of days in the tax years that are: |
|---|---|
| 14% | before July 1, 2010 |
| 12% | after June 30, 2010 and before July 1, 2011 |
| 11.5% | after June 30, 2011 and before July 1, 2012 |
| 11% | after June 30, 2012 and before July 1, 2013 |
| 10% | after June 30, 2013 |
Effective CIT Rate
Canadian Controlled Private Corporation (CCPC) Claiming the Incentive Deduction for Small Business
The small business deduction (SBD) provides a lower CIT rate on the first $500,000 of active business income (ABI).
| Effective CIT Rate for CCPC claiming the SBD on the first $500,000 of ABI | Applicable to proportionate number of days in the tax years that are: |
|---|---|
| 5.5% | before July 1, 2010 |
| 4.5% | after June 30, 2010 |
The benefit of the SBD is gradually phased out by applying a 4.25% surtax on taxable income between $500,000 and $1,500,000. Effective July 1, 2010 the SBD surtax is eliminated.
Corporation Claiming the Manufacturing and Processing Profits (M&P) Tax Credit
Corporations involved in manufacturing and processing, fishing, farming, mining and logging may qualify for an M&P tax credit.
| Effective CIT Rate for corporations claiming the M&P tax credit only | Applicable to proportionate number of days in the tax years that are: |
|---|---|
| 12% | before July 1, 2010 |
| 10% | after June 30, 2010 and before July 1, 2013 |
