Corporate Tax Rates

ALBERTA & FEDERAL COMBINED CORPORATE TAX RATES

2019 Alberta & Federal Combined Rates 2018 Alberta & Federal Combined Rates
Type of tax Alberta Rate Federal Rate Combined Rate Alberta Rate Federal Rate Combined Rate
General 12.00% 15.00% 27.00% 12.00% 15.00% 27.00%
M&P 12.00% 15.00% 27.00% 12.00% 15.00% 27.00%
Small business [1] 2.00% 9.00%[2] 11.00% 2.00% 10.00% 12.00%
Investment income
(including refundable taxes)
12.00% 38.67% 50.67% 12.00% 38.67% 50.67%
Personal services business 12.00% 33.00% 45.00% 12.00% 33.00% 45.00%
[1] The small business tax rate applies on the first $500,000 of taxable income for corporations that meet certain criteria.

[2] If a small business corporation earns more than $50,000 in annual income from passive investments, it will start to lose access to the Small Business Deduction (SBD). For every dollar of investment income above $50,000, the SBD will be reduced by $5, and will totally disappear if the business has $150,000 or more in annual passive investment income. This means that the business would pay the regular federal corporate tax rate of 15% on its active business income. (This is only a basic summary of the rules associated with passive investment income.)

(Note: All posted rates are subject to change by Canada Revenue Agency or other government departments that are responsible for them.)