Americas · Tax guide

Canada

Canada taxes corporations federally at 15%, or 9% on small business income, with provincial tax on top for a combined roughly 23% to 31%. GST is 5%, or harmonized sales tax of 13% to 15% in some provinces. Taxes are administered by the Canada Revenue Agency (CRA).

Updated 1 October 2026 · 11 of 13 figures checked against official sources

Check your obligations

At a glance

Federal corporate tax
15%

9% on the first C$500,000 of small business income

Combined with provincial tax
roughly 23% to 31%

General rate, by province

GST
5%

HST 13% to 15% in participating provinces

Registration threshold
C$30,000

Taxable sales over four quarters

Withholding on payments abroad
25%

Before treaty relief

Global minimum tax
15%

Groups with revenue of €750 million or more

Corporate income tax

The federal general rate is 15%. Canadian-controlled private corporations pay 9% federally on their first C$500,000 of active business income. Provinces and territories add their own tax, for a combined general rate of roughly 23% to 31%. The T2 return is due six months after the year-end, with tax generally payable within two or three months.

GST and HST

GST is charged at 5%. Ontario and the Atlantic provinces combine it with their provincial tax as a harmonized sales tax of 13% to 15%; other provinces charge their own retail sales tax separately. Registration is required once taxable sales exceed C$30,000 over four consecutive quarters.

Payments to non-residents

  • Dividends, rents, royalties and non-arm's-length interest: 25% Part XIII tax, reduced by treaty.
  • Fees for services performed in Canada by non-residents: 15% withholding under Regulation 105.
  • When a non-resident sells taxable Canadian property without a clearance certificate, the buyer withholds 25%.

Transfer pricing and the global minimum tax

Related-party transactions must be at arm's length, documented by the filing deadline. Large adjustments without contemporaneous documentation carry a 10% penalty. Groups with revenue of €750 million or more file country-by-country reports and are subject to the global minimum tax at 15%.

Key dates

  • Monthly, quarterly or annuallyGST/HST returns, depending on sales
  • By the 15th of each monthPayroll source deductions (CPP, EI and income tax)
  • 28 FebruaryT4 slips for employees
  • Six months after the year-endCorporate tax return (T2)

Figures and sources

13 figures
  • Federal general corporate tax rate (after the general rate reduction)15%
    Income Tax Act · ss. 123, 123.4
    Checked against the official source
  • Federal small business rate for Canadian-controlled private corporations9%
    Income Tax Act · s. 125
    Checked against the official source
  • Combined federal and provincial general corporate ratesroughly 23% to 31%
    Provincial corporate tax statutes
    Under professional review
  • GST rate5%
    Excise Tax Act, Part IX · s. 165
    Checked against the official source
  • Harmonized sales tax in participating provinces13% to 15%
    Excise Tax Act, Part IX · s. 165(2)
    Under professional review
  • Active business income eligible for the small business rateC$500,000
    Income Tax Act · s. 125(2)
    Checked against the official source
  • Taxable sales over four quarters above which GST/HST registration is requiredC$30,000
    Excise Tax Act · s. 148
    Checked against the official source
  • Part XIII withholding on dividends, rents, royalties and non-arm's-length interest paid to non-residents25%
    Income Tax Act · s. 212
    Checked against the official source
  • Global minimum tax rate15%
    Global Minimum Tax Act (2024) · Definitions
    Checked against the official source
  • Group revenue for country-by-country reporting and the global minimum tax€750 million
    Global Minimum Tax Act (2024)
    Checked against the official source
  • Withholding on fees for services performed in Canada by non-residents15%
    Income Tax Regulations · Reg. 105
    Checked against the official source
  • Purchaser's withholding when a non-resident sells taxable Canadian property without a clearance certificate25%
    Income Tax Act · s. 116
    Checked against the official source
  • Transfer pricing penalty on adjustments above the threshold without contemporaneous documentation10%
    Income Tax Act · s. 247(3)
    Checked against the official source

Indicative only. This assessment is a high-level overview of tax obligations in Canada based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Canadian CPA or tax lawyer before making compliance decisions.