Corporate tax rates vary by province in Canada, and among the three provinces RN Canada verifies for 2026 — Alberta, British Columbia and Ontario — the combined federal-plus-provincial small-business rate is 11% in Alberta and BC and 11.2% to 12.2% in Ontario, while the general rate above the $500,000 small-business limit is 23% in Alberta, 27% in BC, and 26.5% in Ontario. This guide covers only these three provinces, because they are the ones this firm supports with figures checked against its own tax configuration — no rate below is estimated, approximated, or recalled from memory.
Why this guide covers Alberta, BC and Ontario only
Every figure on this page is verified against RN Canada's tax configuration and the firm's own provincial corporate tax guides, not copied from a general reference table. Alberta, British Columbia and Ontario are the provinces the firm actively serves and maintains verified rates for. Rather than list an approximate or unsourced rate for Manitoba, Quebec, the Atlantic provinces or the territories, this guide deliberately stops at three — an unverified number is worse than no number at all.
Combined corporate tax rates for 2026
| Province | Small-business combined rate | General combined rate | Own corporate return? |
|---|---|---|---|
| Alberta | 11% | 23% | Yes — AT1, filed separately with Tax and Revenue Administration |
| British Columbia | 11% | 27% | No — filed on the federal T2 |
| Ontario | 12.2% before July 1, 2026; 11.2% on/after | 26.5% | No — filed on the federal T2 |
Every combined rate is the federal small-business rate (9%) or general rate (15%) plus the province's own rate. The $500,000 small-business limit applies in all three provinces and is shared among associated corporations everywhere.
Provincial rates behind the combined figures
| Province | Provincial small-business rate | Provincial general rate |
|---|---|---|
| Alberta | 2% | 8% |
| British Columbia | 2% | 12% |
| Ontario | 3.2% (before Jul 1, 2026) / 2.2% (on/after) | 11.5% |
Alberta's 8% general rate is the lowest general provincial corporate rate among the three, which is why the gap widens most for Alberta once a company's active business income passes $500,000. BC's 12% general rate is the highest of the three. Ontario sits between the two on both bands, and is also the only one of the three changing its small-business rate mid-year.
Alberta: no PST, standalone AT1 filing
Alberta charges the lowest combined rates here — 11% small-business, 23% general — and has no provincial sales tax and no employer health tax. The trade-off is a separate AT1 return filed with Alberta Tax and Revenue Administration in addition to the federal T2. See the full Alberta corporate tax guide and the short Alberta small-business tax rate page.
British Columbia: highest general rate, two sales taxes
BC matches Alberta's 11% small-business rate but has the highest general rate of the three at 27%, plus a separate 7% PST on top of GST. BC's corporate tax is filed on the same federal T2 as its income tax — no standalone provincial return. See the full BC corporate tax guide and the short BC small-business tax rate page.
Ontario: a rate cut lands mid-year
Ontario's small-business rate drops from 3.2% to 2.2% on July 1, 2026, taking the combined rate from 12.2% to 11.2%. The $500,000 small-business limit itself stays the same — only the rate changes, and a corporation whose fiscal year straddles the effective date prorates the old and new rates by days. See the full Ontario corporate tax guide and the short Ontario small-business tax rate page.
How RN Canada helps
RN Canada is an accounting and advisory firm headquartered in Edmonton with a Vancouver office, serving clients across Alberta, British Columbia and Ontario. Led by Ozgur Duymaz, Ph.D., CPA (Canada), ACCA (UK), CMA (US), the firm prepares T2 corporate returns (plus the Alberta AT1 where required), models the small-business and general bands for a specific fiscal year, and plans around the associated-company and passive-income grind-down rules that can shrink the $500,000 limit in any province. Estimate a specific liability with the corporate tax calculator, or start with tax return preparation.
Frequently asked questions
It depends on the province. For the three provinces this guide covers with verified 2026 figures, the combined federal-plus-provincial small-business rate is 11% in both Alberta and BC, and 11.2% to 12.2% in Ontario depending on the date within the fiscal year. General rates above the small-business limit are 23% in Alberta, 27% in BC, and 26.5% in Ontario.
RN Canada verifies every published rate against its own tax configuration and the provincial guides it maintains, and those three provinces are the ones the firm actively supports with verified 2026 figures. Rather than publish an approximate or unverified rate for another province, this guide covers only the provinces it can back with a checked number.
No. Every province sets its own small-business and general corporate tax rates, which stack on top of the same federal 9% small-business and 15% general rates. Among the three provinces covered here, Alberta has the lowest general rate (8%), BC the highest (12%), and Ontario sits in between (11.5%), with a legislated small-business rate cut partway through the 2026 tax year.
The federal $500,000 small-business limit is the starting point everywhere, and Alberta, BC and Ontario all apply their reduced provincial rate to that same $500,000 band rather than setting their own dollar threshold. The limit itself is shared among associated corporations and can be ground down by passive investment income in every province.
Of the three provinces this guide verifies, Alberta has the lowest general corporate tax rate at 8% provincially, for a 23% combined rate with the 15% federal general rate. BC's 12% general rate produces a 27% combined rate, and Ontario's 11.5% produces 26.5% — so Alberta is the cheapest province here for a corporation earning above the $500,000 small-business limit.
Yes. Ontario's provincial small-business rate drops from 3.2% to 2.2% effective July 1, 2026 under Bill 97, moving the combined federal-plus-Ontario small-business rate from 12.2% to 11.2%. A corporation with a fiscal year straddling that date prorates the two rates by days on each side. The $500,000 limit itself does not change.