1.3 – Maximum Combined Personal Tax Rates
Combined provincial and federal top marginal tax rates
| Jurisdiction | Eligible Dividends | Other Than Eligible Dividends | Capital Gains | Other Income |
|---|---|---|---|---|
| AB | 34.31% | 42.31% | 24.00% | 48.00% |
| BC | 36.54% | 48.89% | 26.75% | 53.50% |
| MB | 37.78% | 46.67% | 25.20% | 50.40% |
| NB | 32.40% | 46.83% | 26.25% | 52.50% |
| NL | 46.20% | 48.96% | 27.40% | 54.80% |
| NS | 41.58% | 49.99% | 27.00% | 54.00% |
| NT | 28.33% | 36.82% | 23.52% | 47.05% |
| NU | 33.08% | 37.79% | 22.25% | 44.50% |
| ON | 39.34% | 47.74% | 26.76% | 53.53% |
| PE | 36.54% | 47.92% | 26.00% | 52.00% |
| QC | 40.11% | 48.70% | 26.65% | 53.30% |
| SK | 29.64% | 41.34% | 23.75% | 47.50% |
| YT | 28.93% | 44.04% | 24.00% | 48.00% |
2.2 – Combined Federal and Provincial/Territorial Corporate Tax Rates
Rates for CCPCs, general corporations, and investment income
| Jurisdiction | M&P Rate | General Rate | SBD Limit | SBD Rate | PSB Rate | Investment Income Rate | Capital Gains Rate |
|---|---|---|---|---|---|---|---|
| AB | 23.00% | 23.00% | $500,000 | 11.00% | 41.00% | 46.67% | 23.33% |
| BC | 27.00% | 27.00% | $500,000 | 11.00% | 45.00% | 50.67% | 25.33% |
| MB | 27.00% | 27.00% | $500,000 | 9.00% | 45.00% | 50.67% | 25.33% |
| NB | 29.00% | 29.00% | $500,000 | 11.50% | 47.00% | 52.67% | 26.33% |
| NL | 30.00% | 30.00% | $500,000 | 11.50% | 48.00% | 53.67% | 26.83% |
| NS | 29.00% | 29.00% | $700,000 | 10.50% | 47.00% | 52.67% | 26.33% |
| NT | 26.50% | 26.50% | $500,000 | 11.00% | 44.50% | 50.17% | 25.08% |
| NU | 27.00% | 27.00% | $500,000 | 12.00% | 45.00% | 50.67% | 25.33% |
| ON | 25.00% | 26.50% | $500,000 | 12.20% | 44.50% | 50.17% | 25.08% |
| PE | 30.00% | 30.00% | $600,000 | 10.00% | 48.00% | 53.67% | 26.83% |
| QC | 26.50% | 26.50% | $500,000 | 12.20% | 44.50% | 50.17% | 25.08% |
| SK | 25.00% | 27.00% | $600,000 | 10.00% | 45.00% | 50.67% | 25.33% |
| YT | 17.50% | 27.00% | $500,000 | 9.00% | 45.00% | 50.67% | 25.33% |
*YT: M&P rate is 9.00% for income up to the SBD limit.
**For a CCPC with a tax year of Jan 1 to Dec 31 – rates may vary for non-calendar tax years.
**NS: SBD rate is 10.50% up to the Federal SBD limit. SBD rate is 16.50% between the Federal SBD limit and the provincial SBD limit.
**SK: SBD rate is 10.00% up to the Federal SBD limit. SBD rate is 16.00% between the Federal SBD limit and the provincial SBD limit.
2.3 – Integration Summary: Tax Savings (Cost)
Tax savings (cost) of earning income through a corporation vs personally
| Jurisdiction | Other Canadian Investment Income | Eligible Dividends | Other Than Eligible Dividends | Net Capital Gains* | SBD Income | General Income** | Foreign Income |
|---|---|---|---|---|---|---|---|
| AB | -3.54% | 0.00% | 0.00% | -1.77% | -0.65% | -1.82% | -10.40% |
| BC | -5.61% | 0.00% | 0.00% | -2.80% | -1.01% | -0.30% | -11.69% |
| MB | -6.94% | 0.00% | 0.00% | -3.47% | -1.07% | -4.27% | -13.28% |
| NB | -6.69% | 0.00% | 0.00% | -3.34% | -0.44% | 0.49% | -12.35% |
| NL | -6.85% | 0.00% | 0.00% | -3.42% | -0.03% | -7.54% | -11.97% |
| NS | -7.61% | 0.00% | 0.00% | -3.81% | -1.24% | -4.52% | -12.94% |
| NT | -2.09% | 0.00% | 0.00% | -1.05% | 3.28% | -0.40% | -9.61% |
| NU | -5.73% | 0.00% | 0.00% | -2.87% | -0.75% | -6.69% | -13.13% |
| ON | -4.40% | 0.00% | 0.00% | -2.20% | -0.59% | -2.01% | -10.62% |
| PE | -8.87% | 0.00% | 0.00% | -4.43% | -1.13% | -3.58% | -14.09% |
| QC | -5.40% | 0.00% | 0.00% | -2.70% | -1.65% | -2.80% | -11.50% |
| SK | -5.57% | 0.00% | 0.00% | -2.79% | 0.29% | -1.26% | -12.55% |
| YT | -7.24% | 0.00% | 0.00% | -3.62% | -1.08% | -0.27% | -13.89% |
*For the capital gains calculations, capital dividends are assumed to be paid.
**For the general income calculations, eligible dividends are paid up to the GRIP and the rest is paid by other-than-eligible dividends.
2.3 – Integration Summary: Tax Deferral
Tax deferral of earning income through a corporation vs personally
| Jurisdiction | Other Canadian Investment Income | Eligible Dividends | Other Than Eligible Dividends | Net Capital Gains* | SBD Income | General Income** | Foreign Income |
|---|---|---|---|---|---|---|---|
| AB | 1.33% | -4.03% | 3.98% | 0.67% | 37.00% | 25.00% | 1.33% |
| BC | 2.83% | -1.79% | 10.55% | 1.42% | 42.50% | 26.50% | 2.83% |
| MB | -0.27% | -0.55% | 8.34% | -0.13% | 41.40% | 23.40% | -0.27% |
| NB | -0.17% | -5.93% | 8.49% | -0.08% | 41.00% | 23.50% | -0.17% |
| NL | 1.13% | 7.87% | 10.62% | 0.57% | 43.30% | 24.80% | 1.13% |
| NS | 1.33% | 3.25% | 11.66% | 0.67% | 43.50% | 25.00% | 1.33% |
| NT | -3.12% | -10.00% | -1.51% | -1.56% | 36.05% | 20.55% | -3.12% |
| NU | -6.17% | -5.25% | -0.54% | -3.08% | 32.50% | 17.50% | -6.17% |
| ON | 3.36% | 1.01% | 9.41% | 1.68% | 41.33% | 27.03% | 3.36% |
| PE | -1.67% | -1.79% | 9.59% | -0.83% | 42.00% | 22.00% | -1.67% |
| QC | 3.14% | 1.77% | 10.36% | 1.57% | 41.10% | 26.80% | 3.14% |
| SK | -3.17% | -8.69% | 3.01% | -1.58% | 37.50% | 20.50% | -3.17% |
| YT | -2.67% | -9.41% | 5.71% | -1.33% | 39.00% | 21.00% | -2.67% |
*For the capital gains calculations, capital dividends are assumed to be paid.
**For the general income calculations, eligible dividends are paid up to the GRIP and the rest is paid by other-than-eligible dividends.
Marginal Tax Rates by Bracket – New Brunswick
Combined federal and provincial marginal tax rates. Assumes ordinary income; only basic personal amount and applicable low-income rate reductions claimed.
| From | To | Ordinary Income / Interest | Capital Gains | Canadian Dividends (Non-Eligible) | Canadian Dividends (Eligible) |
|---|---|---|---|---|---|
| New Brunswick | – | – | – | – | – |
| Taxable income | – | Ordinary income, Interest | Capital gains | Canadian dividends | – |
| From | To | – | – | Non-Eligible | Eligible |
| $13,664 | $16,451 | 0.00% | 0.00% | 0.00% | 0.00% |
| $16,452 | $22,357 | 14.00% | 7.00% | 5.72% | -1.41% |
| $22,358 | $49,628 | 26.40% | 13.20% | 16.81% | -3.62% |
| $49,629 | $52,332 | 23.40% | 11.70% | 13.36% | -7.76% |
| $52,333 | $58,522 | 28.00% | 14.00% | 18.65% | -1.41% |
| $58,523 | $104,665 | 34.50% | 17.25% | 26.13% | 7.56% |
| $104,666 | $117,044 | 36.50% | 18.25% | 28.43% | 10.32% |
| $117,045 | $181,439 | 42.00% | 21.00% | 34.75% | 17.91% |
| $181,440 | $193,860 | 45.29% | 22.65% | 38.54% | 22.46% |
| $193,861 | $258,481 | 48.79% | 24.40% | 42.57% | 27.29% |
| $258,482 | and greater | 52.50% | 26.25% | 46.83% | 32.40% |
As of January 11, 2026.
This information is provided for broad illustrative purposes only and is not warranted for accuracy or applicability to any particular situation.
Marginal Tax Rates by Bracket – Newfoundland and Labrador
Combined federal and provincial marginal tax rates. Assumes ordinary income; only basic personal amount and applicable low-income rate reductions claimed.
| From | To | Ordinary Income / Interest | Capital Gains | Canadian Dividends (Non-Eligible) | Canadian Dividends (Eligible) |
|---|---|---|---|---|---|
| Newfoundland and Labrador | – | – | – | – | – |
| Taxable income | – | Ordinary income, Interest | Capital gains | Canadian dividends | – |
| From | To | – | – | Non-Eligible | Eligible |
| $11,188 | $16,451 | 0.00% | 0.00% | 0.00% | 0.00% |
| $16,452 | $22,766 | 14.00% | 7.00% | 5.72% | -1.41% |
| $22,767 | $24,190 | 22.70% | 11.35% | 12.04% | 1.90% |
| $24,191 | $30,486 | 38.70% | 19.35% | 30.44% | 23.98% |
| $30,487 | $44,677 | 22.70% | 11.35% | 12.04% | 1.90% |
| $44,678 | $58,522 | 28.50% | 14.25% | 18.71% | 9.91% |
| $58,523 | $89,353 | 35.00% | 17.50% | 26.19% | 18.88% |
| $89,354 | $117,044 | 36.30% | 18.15% | 27.68% | 20.67% |
| $117,045 | $159,527 | 41.80% | 20.90% | 34.01% | 28.26% |
| $159,528 | $181,439 | 43.80% | 21.90% | 36.31% | 31.02% |
| $181,440 | $223,339 | 47.09% | 23.55% | 40.09% | 35.57% |
| $223,340 | $258,481 | 49.09% | 24.55% | 42.39% | 38.33% |
| $258,482 | $285,318 | 52.80% | 26.40% | 46.66% | 43.44% |
| $285,319 | $570,637 | 53.80% | 26.90% | 47.81% | 44.82% |
| $570,638 | $1,141,274 | 54.30% | 27.15% | 48.38% | 45.51% |
| $1,141,275 | and greater | 54.80% | 27.40% | 48.96% | 46.20% |
As of January 11, 2026.
This information is provided for broad illustrative purposes only and is not warranted for accuracy or applicability to any particular situation.
Marginal Tax Rates by Bracket – Nova Scotia
Combined federal and provincial marginal tax rates. Assumes ordinary income; only basic personal amount and applicable low-income rate reductions claimed.
| From | To | Ordinary Income / Interest | Capital Gains | Canadian Dividends (Non-Eligible) | Canadian Dividends (Eligible) |
|---|---|---|---|---|---|
| Nova Scotia | – | – | – | – | – |
| Taxable income | – | Ordinary income, Interest | Capital gains | Canadian dividends | – |
| From | To | – | – | Non-Eligible | Eligible |
| $11,932 | $14,999 | 0.00% | 0.00% | 0.00% | 0.00% |
| $15,000 | $15,215 | 0.00% | 0.00% | 0.00% | 0.00% |
| $15,216 | $16,451 | 13.79% | 6.89% | 14.13% | 6.82% |
| $16,452 | $20,999 | 27.79% | 13.89% | 19.85% | 5.41% |
| $21,000 | $30,994 | 22.79% | 11.39% | 14.10% | -1.49% |
| $30,995 | $58,522 | 28.95% | 14.47% | 21.18% | 7.01% |
| $58,523 | $61,990 | 35.45% | 17.72% | 28.66% | 15.98% |
| $61,991 | $97,416 | 37.17% | 18.58% | 30.64% | 18.35% |
| $97,417 | $117,044 | 38.00% | 19.00% | 31.59% | 19.50% |
| $117,045 | $157,123 | 43.50% | 21.75% | 37.92% | 27.09% |
| $157,124 | $181,439 | 47.00% | 23.50% | 41.94% | 31.92% |
| $181,440 | $258,481 | 50.29% | 25.15% | 45.73% | 36.47% |
| $258,482 | and greater | 54.00% | 27.00% | 49.99% | 41.58% |
As of January 11, 2026.
This information is provided for broad illustrative purposes only and is not warranted for accuracy or applicability to any particular situation.
Marginal Tax Rates by Bracket – Prince Edward Island
Combined federal and provincial marginal tax rates. Assumes ordinary income; only basic personal amount and applicable low-income rate reductions claimed.
| From | To | Ordinary Income / Interest | Capital Gains | Canadian Dividends (Non-Eligible) | Canadian Dividends (Eligible) |
|---|---|---|---|---|---|
| Prince Edward Island | – | – | – | – | – |
| Taxable income | – | Ordinary income, Interest | Capital gains | Canadian dividends | – |
| From | To | – | – | Non-Eligible | Eligible |
| $15,000 | $16,451 | 0.00% | 0.00% | 0.00% | 0.00% |
| $16,452 | $18,683 | 14.00% | 7.00% | 5.72% | -1.41% |
| $18,684 | $22,999 | 23.50% | 11.75% | 15.15% | -2.79% |
| $23,000 | $29,999 | 28.50% | 14.25% | 20.90% | 4.11% |
| $30,000 | $33,927 | 23.50% | 11.75% | 15.15% | -2.79% |
| $33,928 | $58,522 | 27.47% | 13.73% | 19.71% | 2.69% |
| $58,523 | $65,819 | 33.97% | 16.98% | 27.19% | 11.66% |
| $65,820 | $106,889 | 37.10% | 18.55% | 30.79% | 15.98% |
| $106,890 | $117,044 | 38.12% | 19.06% | 31.96% | 17.39% |
| $117,045 | $142,519 | 43.62% | 21.81% | 38.28% | 24.98% |
| $142,520 | $181,439 | 45.00% | 22.50% | 39.87% | 26.88% |
| $181,440 | $258,481 | 48.29% | 24.15% | 43.66% | 31.43% |
| $258,482 | and greater | 52.00% | 26.00% | 47.92% | 36.54% |
As of January 11, 2026.
This information is provided for broad illustrative purposes only and is not warranted for accuracy or applicability to any particular situation.