BC's small business tax rate is 11% combined in 2026 — a 2% BC provincial rate plus the 9% federal small-business rate — on the first $500,000 of active business income earned by an eligible Canadian-controlled private corporation (CCPC). The BC corporate tax rate above that limit is 27% combined (12% BC general + 15% federal general).
The rate at a glance
| Income band (2026 tax year) | Federal | BC | Combined |
|---|---|---|---|
| Active business income up to $500,000 (CCPC, SBD) | 9% | 2% | 11% |
| Active business income above $500,000 (general) | 15% | 12% | 27% |
The $500,000 small-business limit matches the federal threshold, is shared among associated corporations, and can be ground down where a CCPC and its associated group earn more than $50,000 of passive investment income in the prior year.
The 11%/27% figures cover corporate income tax only. BC businesses separately deal with the 5% federal GST and a 7% provincial PST, and — for payroll above $1 million — the BC Employer Health Tax.
Full guide
For the GST/PST breakdown, the 2026 PST expansion to professional services, and a worked example crossing the small-business limit, see the BC Corporate Tax Guide. To estimate your own liability, use the corporate tax calculator, or browse the BC taxes FAQ hub.
How RN Canada helps
RN Canada is an accounting and advisory firm with offices in Edmonton and Vancouver, led by Ozgur Duymaz, Ph.D., CPA (Canada), ACCA (UK), CMA (US). We prepare T2 corporate returns for BC corporations and plan around the $500,000 small-business limit, associated-company rules, and passive-income grind. See our tax return preparation service.
Frequently asked questions
11% combined — BC's 2% provincial small-business rate plus the federal 9% small-business rate — on the first $500,000 of active business income earned by an eligible Canadian-controlled private corporation (CCPC) in the 2026 tax year.
27% combined: BC's 12% general rate plus the federal 15% general rate. Only active business income above the $500,000 small-business limit is taxed at this higher rate — the first $500,000 keeps the 11% small-business rate.
$500,000 of active business income per year, matching the federal limit. The limit is shared among associated corporations and is ground down once a CCPC and its associated group earn more than $50,000 of passive investment income in the prior year.
On small-business income the two provinces are identical: both charge 2% provincially, for an 11% combined rate. The gap opens above the small-business limit, where BC's 27% combined general rate is four points higher than Alberta's 23%.
No. The 11% figure is corporate income tax only. BC also charges a separate 7% Provincial Sales Tax (PST) on top of the 5% federal GST — a different tax on sales, not on corporate income.
Yes. Our corporate tax calculator estimates federal-plus-BC corporate income tax across both the small-business and general bands using 2026 rates.