Corporate Income Tax Rates – 2019

The federal general (and M & P) corporate income tax rate remains 15 percent. Provincial and territorial general (and M & P) rates remained mostly steady but decreased in Alberta and Quebec for December 31, 2019 year-ends. The general (and M & P) rate in Alberta decreased from 12 percent to 11 percent after June 2019 and will continue to decrease, to 10 percent after 2019, 9 percent after 2020, and 8 percent after 2021. Quebec’s general (and M & P) rate decreased from 11.7 percent to 11.6 percent after 2018 and will further decrease to 11.5 percent after 2019. The table below shows the 2018 and 2019 combined general, M & P, and small business rates.

The federal small business tax rate decreased from 10 percent to 9 percent after 2018; as a result, all combined federal and provincial/ territorial small business rates decreased in 2019. In addition, for December 31, 2019 year-ends, provincial and territorial small business rates decreased in New Brunswick, Nunavut, and Prince Edward Island (and in Quebec for the non-M & P small business rate only). The provincial/territorial small business rate in New Brunswick decreased from 3 percent to 2.5 percent after March 2018, and in Nunavut from 4 percent to 3 percent after June 2019. In Prince Edward Island, the small business rate decreased from 4 percent to 3.5 percent after 2018; and will further decrease to 3 percent after 2019. Quebec’s non-M & P small business tax rate decreased from 8 percent to 7 percent after March 27, 2018, and to 6 percent after 2018, and will further decrease to n5 percent after 2019, and to 4 percent after 2020. Small business thresholds remain unchanged in 2019 except in Manitoba, where the province’s small business threshold increased from $450,000 to $500,000, effective after 2018.

Corporate tax rate table containing Federal and provincial tax rates for 2018 and 2019

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Vlad Alyokhin, CPA, Professional Corporation
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Toronto, Ontario
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