Table C1 – Business Income Eligible For SBD | Raymond Chabot Grant Thornton

$500,000 eligible for the SBD for federal purposes and all provinces and territories, except in Saskatchewan ($600,000). In all jurisdictions, the SBD is progressively reduced when paid-up/taxable capital of all associated corporations is greater than $10M and is eliminated when it reaches $50M ($15M for taxation years beginning before April 7, 2022). The SBD is also reduced when the adjusted aggregate investment income of all associated corporations is greater than $50,000 and becomes nil when it reaches $150,000 (not applicable in Ontario and New Brunswick). For greater clarity, both reductions apply in parallel so that the SBD is reduced by the greater of the two amounts.
Rate of 4.5% on zero-emission technology manufacturing income. The rate is increased gradually as of 2032.
Subject to certain conditions, a new small business may benefit from a reduction in corporate tax for its first three years of taxation. Refer to the Nova Scotia corporate tax reduction for new small businesses page for details..
Rate increased by 1% to 2% starting July 1, 2025 (average rate of 1.5% for the year 2025).
Combined rate of 10% on the first $500,000 of income that qualifies for the SBD in 2024 and rate of 16% on the next $100,000 of qualifying income, because of the gap between the federal-provincial ceilings.

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Table C1 – Business Income Eligible For SBD