Ontario – Provincial corporation tax

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 4.5%.

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 does not have to be filed 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 provide a transition from the Corporations Tax Act (Ontario) for corporations with different income tax attributes for federal and Ontario purposes.

Claiming the credits

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

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