what is tax rate for the income made by small business?

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Jun 4th, 2020 9:14 pm

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May 29th, 2020 12:41 am

Addy90 [OP]: Newbie; Apr 23, 2020; 26 posts

May 29th, 2020 12:41 am

what is tax rate for the income made by small business?

Hello, what is the tax rate for Federal corporation and Ontario corporation?
I mean how much tax one would pay if he incorporated federally or provincially
Thanks

3 replies

Jun 4th, 2020 3:16 pm

tony311: Sr. Member; May 29, 2012; 621 posts; 252 upvotes; Southern Ontario

Jun 4th, 2020 3:16 pm

I don't think it would matter if the corporation is located in Ontario either way.
Unless you are talking about federal lands ie. indian reserves, territories

+1

Jun 4th, 2020 3:45 pm

jaybeeg: Sr. Member; Sep 16, 2015; 723 posts; 1456 upvotes; Calgary, AB

Jun 4th, 2020 3:45 pm

Addy90 wrote: ↑ Hello, what is the tax rate for Federal corporation and Ontario corporation?
I mean how much tax one would pay if he incorporated federally or provincially
Thanks

For small businesses in Ontario, the Federal tax rate is 9% and the Provincial rate is 3.2%. A total of 12.2% on the first $500K of income.

It doesn't make a difference whether it's federally or provincially incorporated.

+2

Jun 4th, 2020 9:14 pm

Addy90 [OP]: Newbie; Apr 23, 2020; 26 posts

Jun 4th, 2020 9:14 pm

jaybeeg wrote: ↑ For small businesses in Ontario, the Federal tax rate is 9% and the Provincial rate is 3.2%. A total of 12.2% on the first $500K of income.

It doesn't make a difference whether it's federally or provincially incorporated.

Thank you for your reply.

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