Remote tax filing available across Canada except Quebec · Walk-ins welcome in Scarborough

Toronto Tax & Accounting Solutions Inc.

Small Business and Corporate Tax Calculator for Ontario, 2026

Estimate your corporation's federal and Ontario income tax, then work out whether you owe HST or are due a refund. Both tools use the published 2026 rates and give an estimate in seconds. Built for Toronto and GTA business owners by a Scarborough tax and accounting firm.

  • 200+ five-star Google reviews
  • CRA-authorized electronic filer
  • English, Urdu and Punjabi
  • Payroll handled by a Payroll Compliance Practitioner (PCP)

Federal and Ontario corporate income tax calculator

Type your numbers and the estimate updates instantly.

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Rent, wages, software, vehicle, advertising, professional fees and other business costs. Corporate tax applies to profit, not revenue.

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Filled in for you as revenue minus expenses. You can type your own figure instead, for example your net income for tax purposes from your books.

More options: year-end, small business limit, investment income

Ontario's small business rate changed on July 1, 2026, so the rate is prorated by days.

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The limit is $500,000 a year, shared among associated corporations. Lower it if you share it.

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Estimated federal and Ontario corporate tax $0

Enter your revenue and expenses to see your estimate.

Federal tax
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Ontario tax
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Average rate on your income
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See the full breakdown and limits
Income taxed at the small business rate
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Income taxed at the general rate
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Ontario small business rate used
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This is an estimate, not a tax return. It does not model the taxable capital phase-out above $10 million, the reduction for investment income, manufacturing rates, credits, loss carry-forwards, or the personal tax on money you take out of the corporation.

Get your T2 filed correctly, without the guesswork

T2 corporate returns from $499 plus HST when you provide financial statements, nil returns from $250 plus HST. We confirm the fee in writing before any work begins.

CRA-authorized electronic filer · English, Urdu and Punjabi · Scarborough office

Ontario corporate tax rates used in this calculator

IncomeFederalOntarioCombined
Small business rate: first $500,000 of active business income of a CCPC9%3.2% to June 30, 2026
2.2% from July 1, 2026
12.2% to June 30, 2026
11.2% from July 1, 2026
General rate: all other income15%11.5%26.5%

For a tax year that includes July 1, 2026, Ontario prorates the small business rate by days. A December 31, 2026 year-end works out to about 2.70%. Read more in our Ontario corporate tax rates guide.

Not incorporated?

Sole proprietors, freelancers and gig workers are taxed through their personal return. Use our Ontario income tax calculator in self-employed mode to see tax, CPP and take-home pay. Self-employed returns start from $149.99 plus HST.

What we do for Toronto and GTA small businesses

Bookkeeping and monthly reports

Monthly bookkeeping from$99CAD per month, before HST
  • Books kept in the software you prefer, most often QuickBooks
  • Monthly reports within 10 business days of month-end
  • Standard from $249 and Full Small-Business Support from $449 a month

Final price depends on the size and volume of the work. Corporate tax returns are billed separately.

Payroll from start to finish

One-time setup fee$100before HST. Then $35 per employee per month for monthly pay, or $60 per employee per month for biweekly pay (two pays), before HST
  • Payroll and remittances run from your connected bank account
  • T4 and ROE preparation included for businesses with 5 or more employees
  • We help open your CRA payroll and GST/HST accounts

You pay for your own QuickBooks subscription, and we advise on the plan. Final price is confirmed in your written quote.

Corporate tax and HST filing

T2 from$499with financial statements. HST quoted case by case
  • T2, Ontario and federal corporate annual returns
  • GST/HST registration and returns
  • If the CRA sends a notice about a return we prepared, we explain it at no charge

Work outside the agreed scope is quoted in writing before it begins. Starting a company? See incorporation in Ontario.

Incorporation in Ontario

Incorporation from$249plus HST. Free consultation first. Government filing fees are advised separately.
  • Set up your Ontario corporation with our Scarborough office
  • We help open your CRA payroll and GST/HST accounts
  • Bookkeeping, payroll and T2 filing available once you are set up

Ask us whether incorporating suits your situation. Your final price is confirmed in writing.

Questions about Ontario business tax and HST

What is Ontario's small business tax rate in 2026?

Ontario's small business rate is 3.2% for days before July 1, 2026 and 2.2% from July 1, 2026. Combined with the 9% federal rate, the total is 12.2% before July 1 and 11.2% after. A tax year that includes July 1 uses a day-weighted blend.

Who qualifies for the small business rate?

A Canadian-controlled private corporation can use the small business rate on up to $500,000 of active business income a year. Associated corporations share that limit. The limit also phases out for corporations with $10 million to $50 million of taxable capital.

Does investment income affect the small business limit?

Yes. The federal limit is reduced by $5 for every $1 of adjusted aggregate investment income above $50,000, and it reaches zero at $150,000. This calculator does not model that, so if your corporation earns investment income, ask us for a proper calculation.

How is HST owed or refunded worked out?

Under the regular method, net tax is the HST you collected on sales minus the input tax credits you can claim on business purchases. If the result is positive you remit it to the CRA. If it is negative, you are due a refund.

What is the quick method for HST?

The quick method lets you remit a set percentage of your sales including HST instead of claiming credits on expenses. For Ontario the rates are 8.8% for services and 4.4% for goods for resale, with a 1% credit on the first $30,000 of eligible sales each year. Your sales including HST must be $400,000 or less, and you must stay on the method for at least a year.

Do I need to register for HST?

You must register once your taxable revenues pass $30,000, either in a single calendar quarter or over the last four consecutive calendar quarters. Below that, registration is optional, and it lets you claim input tax credits on business purchases.

Talk to our Scarborough office about your numbers

Tell us what you need and we will quote it before we start. Call us, message us on WhatsApp, or visit the office. We also file remotely for businesses across Canada except Quebec.

Toronto Tax & Accounting Solutions Inc. Office 19, 695 Markham Road, Scarborough, Ontario M1H 2A5 (437) 410-7999 · Info@torontax.ca Mon to Fri 10 AM to 7 PM, Sat 11 AM to 5 PM March 1 to May 15: seven days a week, 9 AM to 9 PM. Walk-ins welcome. See all Scarborough services.

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Tell us what you need and we’ll get back to you. Prefer to talk? Call us – at our Scarborough office or entirely online.

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