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Capital Tax

The Canada Revenue Agency (CRA) administers Ontario's corporate income tax, capital tax, corporate minimum tax, and the special additional tax on life insurers.

Capital Tax is a tax charged on a corporation's taxable capital. Taxable capital is the amount determined under Part 1.3 of the Income Tax Act (Canada) plus accumulated other comprehensive income.

Effective July 1, 2010 capital tax was eliminated. It was eliminated effective January 1, 2007 for Ontario corporations primarily engaged in manufacturing or resource activities.

Ontario's Capital Tax
  Deduction ($ M)Rates1(%)
Regular Corporations Financial Institutions
First $400M of Taxable Capital Taxable Capital Over $400M
Non-Deposit TakingDeposit Taking
Jan. 1, 2008150.2250.450.540.675
Jan. 1, 2009150.2250.450.540.675
Jan. 1, 2010150.150.30.360.45
July 1, 2010Eliminated
1 The tax rate cuts will be pro-rated for tax years straddling the effective dates.

Learn more - contact the CRA:

  • 1 800 959-5525 English
  • 1 800 959-7775 French
  • 1 800 665-0354 for teletypewriter (TTY)
Updated: March 30, 2022
Published: March 30, 2022