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Tax rates

2011 Corporate Income Tax Rates

Corporations operating in Ontario are generally taxed at a rate of 28.0 per cent. However, Ontario's manufacturing and resource industries are subject to a lower 10 per cent provincial tax rate. When combined with the federal Manufacturing & Processing (M&P) rate of 16.5 per cent, a corporation earning manufacturing income in Ontario is taxed at a rate of only 28.0 per cent.

Tax Rates

2011 Property Tax Rates

Final 2011 Property Tax Rates
Description City
Tax Rate %		 Education Tax Rate % Total
Tax Rate %
Residential 0.5619218% 0.2310000% 0.7929218%
Multi-Residential 1.8635584% 0.2310000% 2.0945584%
New
Multi-Residential		 0.5619218% 0.2310000% 0.7929218%
Commercial General 1.8257360% 1.5404080% 3.3661440%
Residual Commercial -
Band 1		 1.7036058% 1.5404080% 3.2440138%
Residual Commercial -
Band 2		 1.8257360% 1.5404080% 3.3661440%
Industrial 1.8203441% 1.5657920% 3.3861361%
Pipelines 1.0808925% 1.6371510% 2.7180435%
Farmlands 0.1404805% 0.0577500% 0.1982305%
Managed Forests 0.1404805% 0.0577500% 0.1982305%

Example: Estimated taxes on a residential property with an Assessed Value of $427,177:

Estimated property tax
= Assessed Value x Residential Tax Rate = $427,177 x 0.7929218%>
= $3,387.18

Corporate Income Tax Rates
Industry Canada Ontario Combined
General 16.5% 11.5%* 28.0%
Manufacturing & processing 16.5% 10.0% 26.5%
Small business 11% 4.50% 15.5%
*as of July 1, 2011

Payroll Taxes

You have to deduct Employment Insurance (EI) premiums from insurable earnings you pay to your employees. In addition, you must pay 1.4 times the amount of the employee's premiums.

There is no age limit for deducting EI premiums. You stop deducting EI premiums when you reach the yearly maximum employee contribution.

EI premiums rate for 2011

  • Premium rate is 1.78%
  • Maximum annual insurable earnings are $44,200.00
  • Maximum annual employee premium is $786.76
  • Maximum annual employer premium is $1101.46

Canadian Pension Plan (CPP) Contributions (4.95%)

You have to deduct CPP contributions from an employee's remuneration if that employee:

  • is 18 years or older, but younger than 70;
  • is in pensionable employment during the year;
  • is not considered to be disabled under the CPP or QPP; and
  • does not receive a CPP or QPP retirement pension.

As an employer, you must also contribute the same amount of CPP that you deduct from your employees' remuneration.

CPP rate for 2011

  • Employee contribution rate is 4.95% of pensionable earnings
  • Maximum annual pensionable earnings are $48,300.00
  • Basic yearly exemption is $3,500
  • Maximum annual employee contribution is $2217.60
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