Competitive corporate taxes
Alberta has one of the most competitive tax environments in North America. It is the only province that does not have a provincial retail sales tax and there are no provincial capital or payroll taxes, which are common in many other provinces and U.S. states.
The combined federal/provincial corporate income tax rate is 25% for general businesses and 14% for small businesses and a competitive corporate tax rate is in place for manufacturers.
| Province | General | Mfg & Processing | Small Business |
|---|---|---|---|
| Alberta | 10.0 | 10.0 | 3.0 |
| British Columbia | 10.0 | 10.0 | 2.5 |
| New Brunswick | 10.0 | 10.0 | 4.5 |
| Quebec | 11.9 | 11.9 | 8.0 |
| Manitoba | 12.0 | 12.0 | 0.0 |
| Saskatchewan | 12.0 | 10.0 | 2.0 |
| Ontario | 11.5 | 10.0 | 4.5 |
| Newfoundland & Labrador | 14.0 | 5.0 | 4.0 |
| Prince Edward Island | 16.0 | 16.0 | 1.0 |
| Nova Scotia | 16.0 | 16.0 | 4.0 |
| Federal | 15.0 | 15.0 | 11.0 |
| State | General | Mfg & Processing | Small Business |
|---|---|---|---|
| Oregon | 7.6 | 7.6 | 7.3 |
| California | 8.84 | 8.84 | 8.84 |
| North Dakota | 6.4 | 6.4 | 6.1 |
| Montana | 6.75 | 6.75 | 6.75 |
| Idaho | 7.6 | 7.6 | 7.6 |
| Colorado | 4.63 | 4.63 | 4.63 |
| Utah | 5.0 | 5.0 | 5.0 |
| New Mexico | 7.6 | 7.6 | 4.8 |
| Louisiana | 8.0 | 8.0 | 7.3 |
| Arizona | 6.97 | 6.97 | 6.97 |
| Federal | 35.0 | 31.85 | 34.0 |
Rates as of February, 2012.
- The small business rate is the effective tax rate for US $505,526 (comparable to the Canadian threshold of Cdn $500,000)
- The small business income threshold for Nova Scotia and Manitoba is Cdn $400,000. For all other provinces the small business income threshold is Cdn $500,000
Source: Canada Revenue Agency, PWC Tax News Network and Federation of Tax Administrators
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Date Updated: Wed, 05 Dec 2012 10:19:05
RDP: 455