Corporate tax rates in Canada
When it comes to taxes, everyone’s first question is: How much am I going to owe?

A Canadian small business corporation (CCPC) is eligible for the small business deduction up to a $500,000 threshold. Which means you will only pay 11% in corporate taxes on your first $500,000 in active business income.

Your active business income is the money you make doing business. It’s treated differently by the CRA than any income you make from investments or rental properties.

What is goods and services tax (GST)?
Most small businesses in Alberta are required to start collecting GST in the year they reach $30,000 in sales. Your business must register for a GST number before it can start charging GST to customers. Charge 5% GST on all sales that are not GST-exempt. You collect this 5% on behalf of the government, not for yourself. So stash the GST you collect in a savings account.

Did you know? You subtract the GST you pay on goods and services (input tax credits) from what you collect. Then, you remit your net GST to government.

Or you may qualify for the quick method. If you do, you simply remit 3.6% of your gross sales (including GST) to the CRA. Learn more about GST.