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Small Business Deduction (reduced federal tax rate for CCPCs)

Canada Revenue Agency

For Canadian-controlled private corporations claiming the small business deduction, the net tax rate is 9% (4.5% for manufacturers of qualifying zero-emission technology)

Reduced federal corporate income tax rate on active business income of Canadian-controlled private corporations, up to the business limit.

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How to apply

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Who qualifies

Canadian-controlled private corporations (CCPCs) claiming the small business deduction on active business income up to the business limit; associated-corporation and passive income rules apply (not fetched). Ontario's own small business rate is covered by the Ontario segment.

Small businessCorporation

Good to know

  • Funding: The page's table lists provincial/territorial business limits (including $500,000 for several jurisdictions); the federal limit itself is not recorded as a field.
  • Notes: Status 'Ongoing' is inferred because the page lists the rate without an end date; no explicit status statement exists.

Evidence from the official page

  • amount“claiming the small business deduction , the net tax rate is 9%” source ↗
  • amount“4.5% for manufacturers of qualifying zero-emission technology” source ↗

Verified 2026-10-08 · Medium confidence. Always confirm on the official page before applying.