Corporate Tax / Mileage / Per Diem Rates
Federal & Ontario corporate tax, December 31, 2026
Corporate tax rates
| Active Business Income | % |
|---|---|
| $0 to $500,000 | 11.7% |
| $500,001 and up | 26.5% |
| Investment Income | % | Note |
|---|---|---|
| Interest / foreign dividends / net rental income | 50.2% | 30% refundable (net 20%) |
| Dividends from Canadian public companies | 38.3% | 100% refundable |
| Capital Gains | 25.1% | 15% refundable (net 10%) |
Summary
Federal corporate tax rate: 9.0% on 1st $500,000; 15.0% on the balance
Ontario regular corporate tax rate: 2.2% on 1st $500,000 (was 3.2% to June 30, 2026); 11.5% on the balance
Quebec corporate tax rate: 11.5%
Investment tax: Refundable at a ratio of $38 for every $100 taxable dividend declared
Mileage rates
| Period | First 5,000 km | Balance |
|---|---|---|
| Jan to Dec ’26 | $0.73 / km | $0.67 / km |
| Jan to Dec ’25 | $0.72 / km | $0.66 / km |
Automobile limits
| Limit | 2026 | 2025 |
|---|---|---|
| Capital cost (plus tax) | $39,000 | $38,000 |
| Lease (per month, plus tax) | $1,100 | |
| Interest (per month) | $350 | – |
Travel per diem daily rates
Meals & incidentals
$146
per day
Non-commercial accommodation
$50
per day