Competitive Corporate Taxes
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Alberta has one of the most competitive tax environments in North America.
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Alberta is the only province that does not have a provincial retail sales tax.
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Alberta has a competitive corporate tax rate for manufacturers.
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The combined federal/provincial corporate income tax rate is 29.5% for general businesses and 14% for small businesses.
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Alberta has no provincial capital or payroll taxes, which are common in many other provinces and U.S. states.
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Provincial Corporate Income Tax Rates (%) | |||
| Province | General | Mfg & Processing |
Small Business |
| Newfoundland | 14.0 | 5.0 | 5.0 |
| Prince Edward Island | 16.0 | 16.0 | 3.5 |
| Nova Scotia | 16.0 | 16.0 | 5.0 |
| New Brunswick | 13.0 | 13.0 | 5.0 |
| Quebec | 11.4 | 11.4 | 8.0 |
| Ontario | 14.0 | 12.0 | 5.5 |
| Manitoba | 13.5 | 13.5 | 2.0 |
| Saskatchewan | 12.5 | 10-12.5 | 4.5 |
| Alberta | 10.0 | 10.0 | 3.0 |
| British Columbia | 12.0 | 12.0 | 4.0 |
| Federal | 19.5 | 19.5 | 11.0 |
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State Corporate Income Tax Rates (%) | |||
| State | General | Mfg & Processing |
Small Business |
| Washington (a) | n/a | n/a | n/a |
| Oregon | 6.6 | 6.6 | 6.6 |
| California | 8.84 | 8.84 | 8.84 |
| North Dakota | 6.5 | 6.5 | 6.4 |
| 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 | 7.1 |
| Federal | 35.0 | 35.0 | 34.0 |
Canadian rates effective May 2008 / U.S. rates effective January 2008
- Washington has a business occupation tax in lieu of an income tax, which is based on gross revenue sales (0.471% to 1.5% according to the type of business).
- State small business rate is the effective tax rate for US$400,000 (comparable to Alberta threshold of Cdn$430,000) U.S. federal small business rate is the effective rate for US$372,000 (comparable to Canadian federal threshold of Cdn$400,000).
Source: Government of Alberta, PWC Tax News Network & Federation of Tax Administrators
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Provincial Capital and Payroll Tax Rates (Maximum %)
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| Province | Capital Tax General |
Payroll Tax |
| Alberta | - | - |
| British Columbia | - | - |
| Saskatchewan | - | - |
| Manitoba | 0.40 | 2.15 |
| Ontario | 0.225 | 1.95 |
| Quebec | 0.36 | 4.26 |
| New Brunswick | 0.10 | - |
| Nova Scotia | 0.20 | - |
| Newfoundland & Labrador | - | 2.00 |
| Prince Edward Island | - | - |
Source: Budget 2008, Alberta Finance and Enterprise
Date Updated: Oct 02, 2008
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