Competitive corporate taxes
Alberta has one of the most competitive tax environments in North America. It is the only province that does not have a provincial retail sales tax and there are no provincial capital or payroll taxes, which are common in many other provinces and U.S. states.
The combined federal/provincial corporate income tax rate is 26.5% for general businesses and 14% for small businesses and a competitive corporate tax rate is in place for manufacturers.
|
Provincial Corporate Income Tax Rates (%) |
|||
|
Province |
General |
Mfg & |
Small |
|
Alberta |
10.0 |
10.0 |
3.0 |
|
British Columbia |
10.0 |
10.0 |
2.5 |
|
New Brunswick |
10.0 |
10.0 |
5.0 |
|
Quebec |
11.9 |
11.9 |
8.0 |
|
Manitoba |
12.0 |
12.0 |
0.0 |
|
Saskatchewan |
12.0 |
10.0 |
2.0 |
|
Ontario |
11.5 |
10.0 |
4.5 |
|
Newfoundland & Labrador |
14.0 |
5.0 |
4.0 |
|
Prince Edward Island |
16.0 |
16.0 |
1.0 |
|
Nova Scotia |
16.0 |
16.0 |
4.5 |
|
Federal |
16.5 |
16.5 |
11.0 |
|
State Corporate Income Tax Rates (%) |
|||
|
State |
General |
Mfg & |
Small |
|
Oregon |
7.6 |
7.6 |
6.6 |
|
California |
8.84 |
8.84 |
8.84 |
|
North Dakota |
6.4 |
6.4 |
6.1 |
|
Montana |
6.75 |
6.75 |
6.75 |
|
Idaho |
7.6 |
7.6 |
7.6 |
|
Colorado |
4.63 |
4.63 |
4.63 |
|
Utah |
5.0 |
5.0 |
5.0 |
|
New Mexico |
7.6 |
7.6 |
4.8 |
|
Louisiana |
8.0 |
8.0 |
7.1 |
|
Arizona |
6.97 |
6.97 |
6.97 |
|
Federal |
35.0 |
31.85 |
34.0 |
Rates as of July 1, 2011.
- The small business rate is the effective tax rate for US$512,000 (comparable to the Canadian threshold of Cdn$500,000)
- The small business income threshold for Nova Scotia and Manitoba is Cdn$400,000. For all other provinces the small business income threshold is Cdn$500,000
Source: Canada Revenue Agency, PWC Tax News Network and Federation of Tax Administrators
Date Updated:
RDP-1930
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