Federal & Ontario (2018)

Active Business Income ($) (%)
0 to 500,000 13.5
500,001 and up 26.5
Investment Income ($) %
Interest / foreign dividends / net rental income 50.2   60% refundable (net 20%)
Dividends from Canadian public companies 38.3   100% refundable
Summary as at December 31, 2018
  • Federal regular corporate tax rate:  10.0% on 1st $500,000; 15.0% on the balance
    • 10.0% reduced to 9.0% effective January 1, 2019
  • Ontario regular corporate tax rate:   3.5% on 1st $500,000; 11.5% on the balance
  • Quebec corporate tax rate:   11.7%
  • Investment tax: Refundable at a ratio of $38 for every $100 taxable dividend declared

Mileage Rates

Jan ’18 – Dec ’18 – 1st 5,000 km @ $0.55/km; balance @ $0.49/km
Jan ’17 – Dec ’17 – 1st 5,000 km @ $0.54/km; balance @ $0.48/km
Jan ’16 – Dec ’16 – 1st 5,000 km @ $0.54/km; balance @ $0.48/km

Automobile Limits

Capital cost – $30,000 plus tax
Lease – $800 per month plus tax
Interest – $300 per month

Travel Per Diem Daily Rates

Meals & incidentals – $104
Non-commercial accommodation – $50

Personal Service Business (PSB)

Companies that earn the majority of their income from a single customer may be classified by CRA as a Personal Services Business (PSB). This results in a 45% corporate tax rate and most expenses except salary are disallowed. You can minimize this risk by diversifying your income or by paying yourself a salary.