Corporate Minimum Tax

Ontario corporations that exceed certain thresholds may need to pay corporate minimum tax, which is levied on adjusted book income (i.e., financial statement income, with certain adjustments).

Who pays corporate minimum tax?

For tax years that end after June 30, 2010, the tax applies to large corporations (or associated groups) with:

  • total revenue that equals or exceeds $100 million, and
  • total assets that equals or exceeds $50 million.

Corporations only pay corporate minimum tax to the extent it exceeds income tax payable for a tax year.

Tax rate

The Ontario corporate minimum tax rate is:

  • 2.7 per cent for tax years ending after June 30, 2010.

Calculating the tax

The gross corporate minimum tax for a corporation is calculated by multiplying the corporate minimum tax rate by the corporation's adjusted financial statement income less corporate minimum tax losses of prior years, allocated to Ontario.

More information

The Canada Revenue Agency administers Ontario's corporate income tax, capital tax, corporate minimum tax, and the special additional tax on life insurers. Contact the agency with your questions at 1 800 959-5525 or 1 800 665-0354 for teletypewriter (TTY).

Canada Revenue Agency - Ontario corporate minimum tax