Corporate Tax Calculator
Estimate combined federal and provincial corporate income tax for a Canadian-controlled private corporation, split between the small-business and general rates.
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Tax data last reviewed: 2026-06-26. Current tax year on file: 2026. Figures are sourced from canada.ca (CRA) and provincial finance ministries and are kept current by BOMCAS Canada.
Incorporated businesses pay corporate income tax at two rates: a low small-business rate on the first slice of active business income, and a higher general rate above it. This calculator combines the federal and provincial portions and splits your income across both rates to estimate the total your corporation would owe.
In Alberta the combined small-business rate is among the most competitive in Canada, which is one reason many owner-managed businesses in the Edmonton region choose to incorporate.
Understanding the numbers
The small-business deduction
A Canadian-controlled private corporation (CCPC) can claim the small-business deduction on active business income up to the limit (commonly $500,000). The calculator taxes income up to that limit at the combined small-business rate and the remainder at the general rate.
Federal plus provincial
Both governments levy corporate tax. The tool adds the federal rate to Alberta's provincial rate (or whichever province you select) for each band, so the result is the all-in figure.
What it assumes
It assumes a CCPC eligible for the small-business deduction. The deduction can be ground down by large passive investment income or sizeable taxable capital, which this estimate does not model.
Need this done for you? BOMCAS Canada prepares returns and provides tax planning for individuals and businesses in Sherwood Park, Edmonton and across Alberta. Call 780-667-5250 or email info@bomcas.ca.
Corporate tax calculator for Alberta CCPCs and incorporated businesses
Why Alberta is a competitive place to incorporate
Alberta levies one of the lowest combined corporate tax burdens in Canada. For a Canadian-controlled private corporation (CCPC) claiming the small-business deduction, the provincial small-business rate is just 2%, and the general rate is 8% — both well below most other provinces. Stacked with the federal 9% small-business and 15% general rates, the all-in numbers are highly attractive for owner-managed businesses in Sherwood Park, Edmonton and across the province.
This corporate calculator splits your active business income across the small-business and general rates and combines the federal and Alberta portions, so you can see an estimate of your corporation's total tax before you sit down with us to finalise the T2.
The small-business deduction and where it ends
A CCPC can claim the small-business deduction on active business income up to the annual limit (commonly $500,000). Income up to that limit is taxed at the combined small-business rate; income above it is taxed at the higher general rate. The deduction can be reduced where a corporation has large passive investment income or substantial taxable capital, which this estimate does not model — those situations need a tailored review.
Understanding where your corporation sits relative to the limit is central to remuneration planning: how much to pay yourself in salary versus dividends, when to bonus down to the limit, and how to time income across fiscal years. These are decisions we work through with incorporated clients every year.
Beyond the estimate: filing your T2
A corporate return is far more than a single rate calculation. The T2 carries numerous schedules covering capital cost allowance, dividends, shareholder loans, GST reconciliation and more. We prepare and file T2 returns and the supporting financial statements for corporations throughout the Edmonton Capital Region, and we coordinate the corporate filing with the owners' personal returns so the whole structure is optimised.
Related services from our team
How to use the corporate tax calculator
To estimate your corporate tax:
- Enter your active business incomeType the corporation's taxable active business income for the year.
- Select the province and yearAlberta is the default; choose another province if your corporation is taxed there.
- Review the small-business and general splitThe calculator shows tax at the combined small-business rate, tax at the general rate, and the total estimated corporate tax.
Frequently Asked Questions
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OpenThese calculators provide estimates for general information only and do not constitute tax, accounting, or financial advice. Figures are based on published federal and provincial/territorial rates and are updated periodically. For advice specific to your situation, contact BOMCAS Canada. These calculators provide good-faith estimates for planning only and do not constitute tax advice or a filing. For advice specific to your situation, contact BOMCAS Canada at 780-667-5250 or info@bomcas.ca.
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