Ontario – Provincial corporation tax

Important notice

Ontario announced the creation of a new corporation income tax credit, the Ontario made manufacturing investment tax credit.

What's new for corporations 

Basic rate

The Ontario basic income tax rate is 11.5%.

Lower rate

The Ontario small business deduction reduces Ontario basic income tax, resulting in a lower tax rate of 3.2%.

Reporting the tax

The T2 return includes the following Ontario corporation taxes:

You can use Schedule 500, Ontario Corporation Tax Calculation, to calculate your Ontario basic income tax. Schedule 500 is a worksheet and you do not have to file it with your return.

On line 270 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of basic income tax calculated.

Transitional measures

The Ontario transitional tax debits and credits have provided a transition from the Corporations Tax Act (Ontario) for corporations with different income tax attributes for federal and Ontario purposes. Credits are no longer available.

Claiming the credits

Ontario offers different tax credits. Details of each credit can be found in the following pages and their associated schedules:

Other requirement

Forms and publications

Government partners

Page details

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