--- title: "Corporate Tax Estimator 2026 | Federal + Provincial" url: https://www.everstonecpa.com/corporate-tax-estimator description: "Estimate federal and provincial corporate tax on your taxable income, split between the small business deduction rate and income above the limit. Use it." type: tool updated: 2026-10-02 summary: "Enter your corporation’s taxable active business income and see the federal and provincial tax, split between income eligible for the small business deduction and income above the limit." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) Corporate tax estimator [Home](https://www.everstonecpa.com/) [Free tools](https://www.everstonecpa.com/tools) Corporate tax Corporate tax # Corporate tax *estimator* Updated 2 October 2026 **Quick answer:** Enter your corporation’s taxable active business income and see the federal and provincial tax, split between income eligible for the [small business deduction](https://www.everstonecpa.com/glossary) and income above the limit. **Want the real number, not an estimate?** We prepare the T2 from your books and plan the owner pay before the year-end closes, at a fee quoted in writing. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) An estimate is not a return, and the difference is almost always in the adjustments. [An email enquiry](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) will tell you what yours are. An estimate is a planning number. When you need the figure that gets filed, [the T2 is a fixed fee](https://www.everstonecpa.com/corporate-tax-return-t2), quoted in writing before anything starts. Taxable active business income for the year Province or territory of the permanent establishment British Columbia Alberta Manitoba New Brunswick Newfoundland and Labrador Nova Scotia Northwest Territories Nunavut Ontario Prince Edward Island Saskatchewan Yukon Small business limit available to this corporation Leave at $500,000 unless the limit is shared with associated corporations or reduced by passive investment income or taxable capital. Estimates for general information, not tax advice specific to your situation. Rates and rules change and your result depends on details a calculator cannot capture. We confirm the numbers for your circumstances once we review your enquiry. **Nothing you type here leaves your browser.** This calculator runs entirely on your device — no figures are sent to us or to anyone else. What this calculator answers **How much income tax will my corporation owe on this year’s profit?** An incorporated business owner who wants a number to set aside before the year-end file is prepared. It will not produce your T2. It estimates tax on taxable income you supply — arriving at that taxable income from your books is the actual work. ## A worked example These are the numbers already in the calculator above, so you can follow the arithmetic against the result it is showing. Worked example The values the page loads with: $250,000 of taxable income in British Columbia | Step | Figure | | Active business income | $250,000 | | Small business limit | $500,000 — the full amount qualifies | | Federal small business rate | 9% → $22,500 | | BC small business rate | 2% → $5,000 | | Estimated tax | $27,500 (11% combined) | ## What it assumes, and where it stops Every estimate rests on assumptions. These are the ones that would change your number most. Assumptions and limits Where this estimate stops being reliable | Assumption | What it means for your number | | The company is a CCPC claiming the small business deduction | A corporation that is not a CCPC, or has lost access to the deduction, pays the general rate instead — a materially different number. | | The income is active business income | Investment and rental income are taxed under a different regime with refundable components. This estimate does not model them. | | No associated corporations | Associated companies share ONE $500,000 limit between them. Two corporations do not get two limits. | | No [passive income](https://www.everstonecpa.com/glossary) grind | Investment income above the threshold in the prior year reduces the business limit, which can push profit to the general rate. | General information, not advice. [Have a CPA confirm it for your situation](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) Owners use it as a quick corporate tax calculator: enter profit and province, and the combined federal and provincial figure comes back with the arithmetic shown. The estimate is a starting point, not the figure on the T2. ## Two rates, one return A [Canadian-controlled private corporation](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/type-corporation.html) pays two rates. Active income up to the **business limit** gets the [Small business deduction: the $50,000 passive income rule](https://www.everstonecpa.com/blog/small-business-deduction-passive-income-canada): 9% federal plus the provincial lower rate. Above it: 15% federal plus the higher rate. In British Columbia, 11% versus 27%, the biggest step most owner-managed corporations face. ## The limit is not always $500,000 The federal limit is $500,000, but Nova Scotia uses $700,000 and Prince Edward Island and Saskatchewan $600,000. Income between the limits pays the federal general rate but the provincial lower rate, so the estimator shows federal and provincial splits separately. The limit can shrink. [Associated corporations share a single business limit](https://www.everstonecpa.com/blog/associated-corporations-small-business-deduction), reduced by significant group passive income or large taxable capital. Association depends on group-wide control facts, so this input is most often wrong. ## What the number is useful for The estimate informs three choices: what to keep in the company, [salary or dividends](https://www.everstonecpa.com/salary-vs-dividends-calculator), and [instalments](https://www.everstonecpa.com/tax-instalment-calculator) next year. It is not the T2 figure, which also reflects loss carryforwards, [capital cost allowance](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance.html) choices, provincial allocation and credits. ## Before you rely on it Run it before year-end, while bonus timing, equipment purchases and capital cost allowance claims can still change. If the number surprises you, talk then. We handle filing and year-round [planning](https://www.everstonecpa.com/tax-planning-services-canada); the [T2 deadline page](https://www.everstonecpa.com/t2-deadline) gives the due dates. Embed this calculator Free to use on your own site — the snippet keeps a credit link back to this page.

Calculator by EverStone CPA

## What happens when you get in touch An estimate usually leads to the same question: who prepares the real thing. This is how that begins. - **A free thirty-minute conversation.** What you do, what is filed and what is overdue. You leave with a fixed fee in writing and no obligation to take it. - **Access, in the first week.** We are [authorized with the CRA](https://www.everstonecpa.com/forms/aut-01), so notices and balances get looked up rather than requested from you. If you are [switching firms](https://www.everstonecpa.com/switching-accountants), your file is requested the same week. - **Current, then ahead.** Books set up or brought current, anything overdue scheduled oldest year first, and the next twelve months of deadlines set before they arrive. [Send an enquiry](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form), or [ask one question first](https://www.everstonecpa.com/quick-question) — both go to a CPA, not a queue. ## Where we work The fee is the same wherever you are. The practice works online, including for [Abbotsford businesses](https://www.everstonecpa.com/accountant-abbotsford), and serves [Chilliwack farms and trades](https://www.everstonecpa.com/accountant-chilliwack), [Langley owner-managed firms](https://www.everstonecpa.com/accountant-langley) and [Mission operators](https://www.everstonecpa.com/accountant-mission), across [the wider Fraser Valley](https://www.everstonecpa.com/accountant-fraser-valley), and on to [companies in Vancouver](https://www.everstonecpa.com/accountant-vancouver). ## Who this is for, and who it is not This suits an owner planning ahead, deciding on a bonus or an instalment. It does not suit anyone who needs the filed figure — an estimate is not a return, and [the T2](https://www.everstonecpa.com/corporate-tax-return-t2) is quoted before it starts. Common questions ## Corporate Tax Estimator FAQ **What is the small business deduction?** It cuts the federal rate on active business income of a Canadian-controlled private corporation from the 15% general net rate to 9%, up to the $500,000 federal limit. Provinces add their own lower rate, so the combined rate below the limit is far lower. [Ask about your case →](https://www.everstonecpa.com/quick-question) **Why does income above $500,000 cost so much more?** General rates: 15% federal plus the provincial higher rate, 27% combined in British Columbia versus 11% below. By design, the deduction helps small corporations keep working capital. **Do all provinces use the same $500,000 limit?** No. Most use the federal $500,000, but Nova Scotia uses $700,000 and Prince Edward Island and Saskatchewan $600,000. Income between the limits pays the federal general and provincial lower rates. The estimator applies each limit. **Can something reduce my business limit below $500,000?** Yes. Associated corporations share one limit, and significant group passive income or large taxable capital grinds it down. Both depend on group facts, so enter the limit you actually have. **Does this cover investment income or capital gains?** No. It covers active business income only. Corporate investment income has a separate regime with a refundable portion, and capital gains their own inclusion rules. **What does this estimator not account for?** The estimator does not account for Quebec, which administers its own corporate tax through Revenu Québec; income allocated across more than one province; the manufacturing and processing or zero-emission technology reductions; loss carryforwards; tax credits such as scientific research and experimental development; a tax year that straddles a rate change; or the additional tax on banks and life insurers. It also assumes the corporation is a Canadian-controlled private corporation. **When should I have the number checked?** Before setting pay for the year, before a big equipment purchase, and before year-end while you can act. A single-figure estimate misses the timing choices that often matter more than the rate. Send an enquiry to check it against your books. A step earlier? The [Is incorporating worth it for you?](https://www.everstonecpa.com/incorporation-calculator) compares a corporation with a [sole proprietors](https://www.everstonecpa.com/self-employed-tax-return)hip, and [sole proprietor vs. corporation](https://www.everstonecpa.com/incorporation-advice) covers what rates miss. Facing year-end? The [Year-End Playbook](https://www.everstonecpa.com/year-end-playbook) paces it in five emails. --- Source: https://www.everstonecpa.com/corporate-tax-estimator Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online