Competitive Corporate Tax Rates
With a total combined provincial (11.5%)and federal (15%) corporate income tax (CIT) rate of 26.5%, Ontario’s combined general federal-provincial CIT rate is lower than the average of G20 countries and lower than the average federal-state CIT rate in the United States.
- Manufacturing and processing companies receive a reduced Ontario CIT rate of 10%
- Small businesses with income of less than $500,000 benefit from a low Ontario CIT rate of only 4.5%; and
- CIT and sales tax administration are streamlined, saving Ontario businesses $635 million annually in compliance costs.
Generous R&D Tax Incentives
According to the 2014 KPMG Competitive Alternatives Report, Ontario offers the greatest cost advantage for research and development in the G7, citing a cost advantage of 18.8% relative to the U.S. average.
Combined with federal R&D programs, Ontario’s R&D tax incentive program can reduce your after-tax cost of every $100 in R&D spending to between $37 and $61.
- Ontario’s R&D tax incentive program is available to qualified businesses of any size and applies to a range of eligible costs that is broader than in the U.S. and many other countries.
- There is no cap on the program and tax credits can be carried back for three years or forward for 20 years.
- Ontario’s focus on low development costs and simplified tax programs contribute to a combined federal-provincial corporate income tax rate substantially lower than in the United States.
Competitive Local Property Tax Rates
According to BMA Management Consulting Inc.’s 2014 Municipal Tax Study, Sarnia and Lambton Shores have favorable Industrial Tax rates relative to many municipalities in the Greater Toronto Area (GTA) and Southwestern Ontario. In addition to favourable industrial tax rates, Sarnia’s tax rates also ranked below the survey average for Office Buildings ($2.04 / sqft versus an average of $3.02 / sqft) and for Industrial Vacant Land ($1,726 / acre versus $3,367 / acre average).
Our data section contains more information on tax rates for each of the municipalities in Lambton County.