Ontario · 2026 · CCPC · Active business income
Plug in your taxable active business income. We’ll apply the federal + Ontario Small Business Deduction up to $500K, the general rate above it, and — if your fiscal year touches 2026 — the July 1 Ontario rate cut. Ontario CCPCs only. No signup. Numbers stay in your browser.
Your corporation’s taxable income after CCA, salaries, and all other deductions — line 300 of T2. Active business only; passive/investment income isn’t modelled here.
Ontario cut its small-business rate from 3.2% to 2.2% on July 1, 2026. A calendar-2026 tax year straddles the change — the blended rate pro-rates by day count (181 days at 3.2% + 184 days at 2.2%).
Active business income under the $500K SBD limit. Passive income, M&P deduction, and the taxable-capital grind aren’t modelled here — ask us if your corporation has significant investment income or over $10M in taxable capital.
We file corporate returns for Ontario CCPCs every week — incorporations, owner-managed shops, professional corporations. We’ll model the SBD, optimize the owner-pay mix (salary vs dividends), and handle CRA end-to-end.
Book a free corporate tax review →The SBD drops your federal rate from 15% to 9% and your Ontario rate from 11.5% to the provincial small-business rate, on the first $500,000 of active business income. Combined, that’s roughly a 14.3-point cut on qualifying income — the biggest single lever in Canadian small-biz tax.
Active business income above $500,000 is taxed at the general rate — 15% federal + 11.5% Ontario = 26.5% combined. The SBD limit is shared across associated corporations, so if you control multiple companies, the $500K is split between them.
The 2026 Ontario Budget dropped the provincial small-business rate from 3.2% to 2.2% effective July 1, 2026. For a tax year that straddles that date, the rate is prorated by days. A standard Jan 1 – Dec 31, 2026 fiscal year runs 181 days at the old rate and 184 days at the new one.
Passive investment income (taxed at ~50% with RDTOH), the $50K passive-income grind on the SBD, the $10M–$50M taxable-capital grind, M&P deduction, Part IV tax on portfolio dividends, provincial rates outside Ontario. Most owner-managed CCPCs don’t need those — but if yours does, run the real numbers with us.
Rates current for tax year 2026. Covers Ontario CCPCs only — Canadian-Controlled Private Corporations earning active business income in Ontario. Passive income, investment income, M&P deduction, the $50K passive-income SBD grind, the $10M–$50M taxable-capital grind, Part IV tax on dividends received, and non-Ontario provincial rates aren’t modelled. This is an estimator, not tax advice. Everything runs in your browser — we never see your numbers.
Sources: CRA corporation tax rates · Ontario.ca corporate income tax · 2026 Ontario Budget Annex. Built by Yogi & Associates, Mississauga.