Corporate tax, HST, CCPC planning, payroll, and T2 filing — from a qualified advisor who knows Ontario tax law inside and out.
Book a Free Intro CallWhether you just incorporated, are running a growing CCPC, or are planning your exit strategy, Smart Canada Tax connects you with qualified advisors who specialize in Ontario small business and corporate tax.
T2 preparation, CCPC optimization, small business deduction, Ontario tax schedule filings.
Ontario HST at 13%, registration, quarterly/annual HST returns, input tax credits.
What to pay yourself from your Ontario corporation to minimize combined personal and corporate tax.
Should you incorporate? When? Federal vs provincial? We help you decide with real numbers.
Holdco structure for Ontario business owners — asset protection, tax-free intercorporate dividends, LCGE preservation.
T1 returns for incorporated business owners, shareholders, self-employed, and rental property owners.
Ontario has some of the most favourable small business corporate tax rates in Canada. Here are the combined federal + Ontario rates:
| Income Type | Federal Rate | Ontario Rate | Combined Rate |
|---|---|---|---|
| Active business income (CCPC, first $500K) | 9.0% | 3.2% | 12.2% |
| Active business income (above $500K) | 15.0% | 11.5% | 26.5% |
| Investment/passive income | 38.67% | 11.5% | 50.17% |
Ontario's 12.2% small business rate is one of the lowest in Canada. An Ontario CCPC earning $500,000 in active business income pays just $61,000 in corporate tax — leaving $439,000 to reinvest or transfer to a holding company.
Ontario uses a Harmonized Sales Tax (HST) of 13% — administered federally by CRA. Once your business revenue exceeds $30,000, you must register and collect HST. Ontario businesses selling to customers in other provinces charge the rate applicable to the customer's province.
Ontario provides its own provincial small business deduction of 3.2% (2026) on the first $500,000 of active business income for CCPCs — on top of the federal 9% SBD. This gives Ontario CCPCs a combined 12.2% rate on qualifying income.
For business owner-managers who also have lower personal income in some years, the Ontario Trillium Benefit provides up to $1,600+/year in combined energy, property tax, and sales tax credits — claimed on your Ontario T1 return.
Larger Ontario corporations with total assets above $50 million or revenues above $100 million are subject to Ontario's Corporate Minimum Tax. Most small businesses are not affected, but it applies if you are scaling toward these thresholds.
Ontario employers with payroll above $1,000,000 pay the Employer Health Tax (EHT) — 1.95% on payroll above the exemption amount. For growing Ontario businesses, EHT planning is an important part of payroll strategy.
Book a virtual session with a qualified Ontario tax advisor. Get answers specific to your business, your structure, and your goals.
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