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.

Provincial Corporate Income Tax Rates (%)
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 3.5 
Federal 15.0 15.0 11.0
State Corporate Income Tax Rates (%)
State General Mfg & Processing Small Business
Oregon 7.6 7.6 6.6
California 8.84 8.84 8.84
North Dakota 5.15 5.15  4.9 
Montana 6.75 6.75 6.75
Idaho 7.4 7.4 7.4
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 32.73 34.0

Rates as of April, 2013.

  • The small business rate is the effective tax rate for US $500,210 (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