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Federal & Ontario Corporate Tax (December 31, 2025)
| Active Business Income ($) | % |
|---|---|
| 0 to 500,000 | 12.2 |
| 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: 3.2% on 1st $500,000; 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
Jan to Dec ’25: 1st 5,000 km @ $0.72; balance @ $0.66/km
Jan to Dec ’24: 1st 5,000 km @ $0.70; balance @ $0.64/km
Automobile Limits
Capital cost – $38,000 plus tax (2024 – $37,000)
Lease – $1,100 per month plus tax (2024 – $1,050)
Interest – $350 per month
Travel Per Diem Daily Rates
Meals & incidentals – $131
Non-commercial accommodation – $50
