Table 1 – Business income eligible for SBD (2016)

  Small
business limit
% Combined
%
Federal $500,000 10.501
Provincial
Alberta 500,000 3.002 13.50
British Columbia 500,000 2.50 13.00
Manitoba 450,0003 0.00 10.50
New Brunswick 500,000 3.62 14.12
Newfoundland and Labrador 500,000 3.00 13.50
Northwest Territories 500,000 4.00 14.50
Nova Scotia 350,000 3.00 13.50
Nunavut 500,000 4.00 14.50
Ontario 500,000 4.50 15.00
Prince Edward Island 500,000 4.50 15.00
Quebec 500,000
   Without MPP 8.00 18.50
   MPP 4.005 14.50
Saskachewan 500,000 2.00 12.50
Yukon 500,000
   Without MPP 3.00 13.50
   MPP 1.50 12.00

1   The federal small business tax rate decreased from 11% to 10.5%, effective January 1, 2016.
2  The 2016 Alberta budget proposes to reduce the small business tax rate from 3% to 2%, effective January 1, 2017.
3  The Manitoba small business limit was increased from $425,000 to $450,000, effective January 1, 2016.
4  The New Brunswick small business tax rate was reduced from 4% to 3.5%, effective April 1, 2016. The rate in this table represents the pro-rated rate for the calendar year.
5  Effective June 4, 2014, Quebec introduced a maximum manufacturing and processing (M&P) small business rate of 6%, decreasing to 4% as of April 1, 2015. The reduced small business rate applies to Canadian controlled private corporations (CCPCs) whose proportion of activities attributable to M&P is 50% or more (where M&P activities are between 25% and 50%, the additional rate reduction is reduced on a linear basis). The Quebec 2015-16 budget has proposed extending the M&P rate in 2017 to companies operating in the primary sector while also proposing certain restrictions to access the regular small business rate, beginning in 2017.