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Free Resource · 2026 Tax Year · Canada

2026 Canadian Business Expense & Deduction Guide

The most comprehensive free deduction reference for Canadian small businesses. Every category a corporation or self-employed owner can claim in 2026: vehicle, home office, meals, capital cost allowance, payroll, professional fees, marketing, travel, insurance, interest, GST/HST input tax credits and owner compensation. Written by a licensed CPA.

Current as of June 2026. Dollar limits and prescribed rates in this guide reflect figures announced for the 2026 tax year. CRA indexes several amounts annually and adjusts prescribed interest rates quarterly. Please verify any figure against the latest CRA release, or speak with us, before relying on it for a filing.

What This Guide Covers

1. The Golden Rule: What Makes an Expense Deductible 2. Vehicle & Motor Expenses (2026 Rates) 3. Home Office Expenses 4. Meals & Entertainment 5. Capital Cost Allowance (CCA) & Asset Classes 6. Payroll, CPP & EI (2026 Limits) 7. Professional, Office & Admin Costs 8. Advertising & Marketing 9. Travel & Conventions 10. Insurance & Interest 11. GST/HST & Input Tax Credits 12. Owner Compensation: Salary vs. Dividends 13. What You Cannot Deduct 14. Records CRA Expects You to Keep 15. Master Deduction Checklist 16. Frequently Asked Questions

1. The Golden Rule: What Makes an Expense Deductible

The Income Tax Act allows a deduction for expenses incurred to earn business income. Three tests decide whether a cost is claimable. If an expense fails any one of them, CRA can disallow it on review.

TestWhat It MeansExample
Business purposeThe expense must be incurred to earn income, not for personal benefit.Office rent qualifies. A family vacation does not.
ReasonablenessThe amount must be reasonable in the circumstances. CRA can reduce amounts that are inflated relative to the business.A $400 client lunch for a one-person consultancy invites scrutiny.
Proper documentationYou must keep a receipt or invoice showing what was bought, from whom, the amount and the date. A bank or credit-card statement alone is not sufficient.A supplier invoice supports the claim; a line on a Visa statement does not.

Mixed-use expenses must be apportioned. When a cost serves both business and personal purposes (a vehicle, a home, a cell phone), you may deduct only the business-use portion. The split must be reasonable and supportable. A phone used 70% for business supports a 70% deduction, provided you can show how you arrived at the percentage.

Most of the disputes we resolve on CRA review come down to one of these three tests, almost always documentation or apportionment. The deductions below are all legitimate; the discipline is in claiming the correct portion and keeping the proof. For incorporated owners, accurate deductions also flow directly into the corporate tax return we prepare each year.

2. Vehicle & Motor Expenses (2026 Rates)

Vehicle costs are among the most claimed and most audited business deductions. There are two methods, and the rules differ between an employee or sole proprietor using a personal vehicle and a corporation that owns or leases one.

Method A: Per-Kilometre Allowance (2026 CRA Prescribed Rates)

Used to reimburse an employee or owner-employee tax-free for business driving in a personal vehicle. The reimbursement is non-taxable when it is based solely on business kilometres at or below these rates.

Travel RegionFirst 5,000 kmEach km After 5,000
Provinces (including Ontario)73¢ per km67¢ per km
Territories (Yukon, NWT, Nunavut)77¢ per km71¢ per km

Self-employed owners cannot use the per-kilometre rate as a deduction. The prescribed rate is a reimbursement benchmark for employees. If you are a sole proprietor, your vehicle deduction is built from actual expenses multiplied by your business-use percentage, supported by a logbook. The per-kilometre rate only applies when a corporation reimburses an owner who is also an employee.

Method B: Actual Expenses × Business-Use Percentage

The corporation or sole proprietor deducts the business-use share of real operating costs. The business-use percentage is business kilometres divided by total kilometres for the year, which is why a logbook is essential.

Deductible Operating CostNotes
Fuel and oilFull business-use share.
Insurance and licensingBusiness-use share of premiums and plate fees.
Repairs and maintenanceBusiness-use share of servicing, tires, parts.
Lease paymentsDeductible up to the monthly ceiling below.
Loan interestDeductible up to the monthly ceiling below.
Capital cost allowance (if owned)Depreciation, subject to the class ceiling below.

2026 Passenger Vehicle Cost Ceilings

Limit2026 Amount (before tax)What It Caps
Class 10.1 capital cost ceiling$39,000Maximum cost on which CCA can be claimed for a passenger vehicle acquired on or after January 1, 2026.
Class 54 (zero-emission) ceiling$61,000Maximum capital cost for an eligible zero-emission passenger vehicle.
Maximum deductible lease cost$1,100 per monthCap on the monthly lease amount deductible for a passenger vehicle.
Maximum deductible loan interest$350 per monthCap on monthly interest deductible on a passenger-vehicle loan.

No logbook, no deduction. The single most common reason CRA reduces a vehicle claim is the absence of a mileage log. Record the date, destination, purpose and kilometres for each business trip. A representative sample period can be acceptable once a full base-year log establishes your pattern, but the base-year log must exist. We help clients set this up correctly so the claim survives review.

Know Your Exact Fee →

3. Home Office Expenses

A business operated from home can deduct the business-use portion of home costs. The portion is usually the area of the workspace divided by the total finished area of the home. If the space is shared, the percentage is reduced for personal hours of use.

Home CostDeductible ShareNotes
RentBusiness-use %Often the largest home-office deduction for a tenant.
Utilities (heat, hydro, water)Business-use %Apportioned on the same square-footage basis.
Home insuranceBusiness-use %Business portion of the policy.
Property taxBusiness-use %Available to owners (not tenants).
Mortgage interestBusiness-use %Interest only, never principal. Owners only.
Maintenance and minor repairsBusiness-use %, or 100% if specific to the workspaceA repair only to the office is fully deductible.

Be careful claiming CCA on a home you own. Claiming capital cost allowance on the business portion of a residence can jeopardize part of the principal-residence exemption when you sell. For most owners the long-term cost of a partial capital-gains exposure outweighs the modest annual CCA. We generally advise owners to claim the operating costs and skip CCA on the home itself.

The home-office deduction cannot create or increase a business loss. If business income is too low to absorb the full home-office amount in a year, the unused portion carries forward and can be claimed against income from the same business in a future year. Nothing is lost; it is deferred.

4. Meals & Entertainment

Business meals and entertainment are deductible, but generally only at 50% of the amount paid. The 50% limit applies to both the food and beverage cost and any related tax and tip.

SituationDeductible Portion
Client or business-development meals50%
Meals while travelling for business50%
Entertainment (event tickets, sporting events)50%
Staff events open to all employees (limited number per year)100%
Meals billed through to a client and itemized on your invoice100%
Meals provided at the worksite for the employer's benefit (specific cases)Varies; confirm before claiming

The all-staff event exception. A holiday party or similar event to which all employees at a location are invited can be fully deductible, subject to CRA's limit on the number of such events per year. Keep the guest list and the purpose with the receipt. Document who attended and why; a receipt with no business context is the weakest position on review.

5. Capital Cost Allowance (CCA) & Asset Classes

Capital assets are not deducted in full in the year of purchase. They are depreciated over time through capital cost allowance, at a prescribed rate per class. The most common classes for a small business are below.

ClassTypical AssetsCCA Rate
Class 8Furniture, fixtures, equipment, tools over $500, most office equipment20%
Class 10General vehicles, trucks, computer hardware purchased in some periods30%
Class 10.1Passenger vehicles above the cost ceiling (each in its own class)30%
Class 12Tools under the threshold, computer software (non-systems), small items100%
Class 50Computer hardware and systems software55%
Class 13Leasehold improvementsStraight-line over lease term
Class 14.1Goodwill and intangible assets5%
Class 54Zero-emission passenger vehicles (within the ceiling)30%

The half-year rule and immediate expensing. In most cases only half the normal CCA rate applies in the year an asset is first available for use. Separately, CCPCs have access to enhanced first-year expensing on eligible property, and several accelerated-investment measures allow a larger deduction in year one. Because these incentives change and have annual limits, we calculate the optimal CCA claim asset by asset when we prepare the return rather than defaulting to the maximum.

CCA is optional and you choose how much to claim. You may claim any amount from zero up to the maximum for the class. In a low-income year it often makes sense to claim little or no CCA, preserving the undepreciated balance for a higher-income year. This is one of the most useful planning levers on a small-business return.

6. Payroll, CPP & EI (2026 Limits)

Wages, salaries, bonuses and the employer's share of statutory contributions are fully deductible business expenses. If you employ staff, or pay yourself a salary through your corporation, these 2026 figures govern your source deductions.

2026 Payroll FigureAmount
CPP first earnings ceiling (YMPE)$74,600
CPP basic exemption$3,500
CPP base contribution rate (employee and employer, each)5.95%
Maximum CPP base contribution (each, employee and employer)$4,230.45
CPP2 second earnings ceiling (YAMPE)$85,000
CPP2 rate on earnings between the ceilings (each)4.00%
Maximum CPP2 contribution (each)$416.00
EI maximum insurable earnings$68,900
EI employee premium rate1.63%
Maximum EI premium (employee)$1,123.07
EI employer rate (1.4 × employee)2.282%

Self-employed owners pay both halves of CPP. A sole proprietor remits the employee and employer portions of CPP on net self-employment income, so the effective base rate is 11.90% up to the ceiling, plus CPP2 where applicable. This is settled annually through the personal return rather than through payroll remittances.

Source deductions are the highest-risk remittance in your business. CPP, EI and income tax withheld from employees are held in trust for CRA. Late or missed remittances draw immediate penalties and, in serious cases, director liability. If payroll is part of your business, we strongly recommend a managed payroll service so remittances are never late.

7. Professional, Office & Admin Costs

The day-to-day costs of running the business are generally fully deductible in the year incurred.

ExpenseDeductibleNotes
Accounting and bookkeeping fees100%Including the fee for preparing the business return.
Legal fees (business-related)100%Fees to earn income or for business contracts. Fees to acquire a capital asset are added to the asset's cost instead.
Office supplies and stationery100%Consumables used in the business.
Software subscriptions100%Accounting, CRM, design and productivity tools used for business.
Bank charges and merchant fees100%Business-account fees and payment-processing costs.
Telephone and internetBusiness-use %Apportion a shared personal line; a dedicated business line is fully deductible.
Salaries to family members100% if reasonableMust reflect actual work at a market rate, with real payment and proper payroll.
Rent for business premises100%Commercial rent outside the home.

Paying a family member must be real. A salary to a spouse or child is deductible only if the person actually performs the work, the rate is what you would pay a stranger for the same work, and the wage is genuinely paid with source deductions handled. Documented, reasonable family wages are a legitimate planning tool; undocumented ones are a frequent audit adjustment.

8. Advertising & Marketing

Marketing costs to promote the business are deductible. For online and media advertising, where you advertise can affect deductibility.

Marketing CostDeductibleNotes
Online advertising (search, social, display)100%Fully deductible when incurred to earn business income.
Website design, hosting and maintenance100%Ongoing costs are deducted; a major build may be capitalized.
Business cards, brochures, signage100%Print and physical marketing materials.
Sponsorships and promotional items100%Must have a genuine promotional purpose for the business.
Advertising in a foreign medium aimed at the Canadian marketRestrictedAdvertising directed at Canadians in certain non-Canadian newspapers or broadcasters can be limited or denied. Most digital platform advertising is unaffected, but confirm before large foreign-media buys.

Keep the invoice and the purpose. Marketing is rarely challenged on principle, but CRA does test that the spend was to earn business income rather than personal. A platform invoice plus a one-line note on the campaign's business purpose is enough to support the claim.

9. Travel & Conventions

Travel undertaken to earn business income is deductible. Meals while travelling remain subject to the 50% limit; other travel costs are generally fully deductible.

Travel CostDeductible
Airfare, train, intercity bus100%
Hotel and lodging100%
Taxi, rideshare, car rental at destination100%
Meals while travelling50%
Conventions (limit of two per year, related to your business)100%, within the two-per-year limit
Incidental personal days added to a business tripNot deductible; only the business portion qualifies

Mixed business and personal travel must be split. When a trip combines business and vacation, only the business portion is deductible. If the primary purpose is personal, the airfare itself may be denied. Keep the agenda, meeting confirmations or conference registration that establishes the business purpose of the trip.

10. Insurance & Interest

CostDeductibleNotes
Commercial general liability insurance100%Business insurance covering operations and premises.
Professional liability / errors & omissions100%Coverage tied to the business's professional activity.
Business-property and contents insurance100%On commercial premises or the business-use share at home.
Interest on business loans and lines of credit100%Interest on borrowing used for business purposes.
Interest on a passenger-vehicle loanCappedLimited to the monthly ceiling noted in the vehicle section.
Life insurance premiumsGenerally not deductibleNarrow exception where a policy is assigned as collateral for a business loan required by the lender.

Interest follows the use of the money, not the security. What makes interest deductible is that the borrowed funds were used to earn business income. Borrowing against your home to fund the business can still produce deductible interest, provided the use of the funds is properly traced and documented. Keep the paper trail from loan to business use.

11. GST/HST & Input Tax Credits

GST/HST is separate from income tax. Once registered, you charge tax on sales and recover the tax you paid on business purchases through input tax credits (ITCs). ITCs are not an income-tax deduction; they are a credit against the tax you collected.

GST/HST PointRule
Registration thresholdRequired once worldwide taxable revenue exceeds $30,000 over four consecutive calendar quarters (or in a single quarter). Voluntary registration is available below the threshold.
Input tax creditsRecover the GST/HST paid on business purchases and expenses, provided you are registered and hold valid documentation showing the tax.
ITC documentationReceipts must show the supplier's GST/HST number and the tax charged. Missing supplier numbers are a common reason ITCs are denied on review.
Meals & entertainment ITCsThe ITC on meals and entertainment is generally restricted to 50%, mirroring the income-tax limit.
Quick MethodAn optional simplified method for smaller businesses that remits a lower flat rate on sales in exchange for forgoing most ITCs. Worth modelling, it suits some service businesses well.

Marketplace and platform sellers, read your tax settings carefully. On many marketplaces the platform collects and remits tax on your sales, which changes what you report and what you can claim. If you sell on a marketplace or operate in e-commerce, the interaction between platform-collected tax and your own filing is worth a dedicated review. We handle GST/HST filing as part of our compliance work.

12. Owner Compensation: Salary vs. Dividends

For an incorporated owner, how you pay yourself is a deduction question for the corporation and a tax question for you personally. Neither salary nor dividends is universally better; the right mix depends on your numbers.

FactorSalaryDividends
Corporate deductionDeductible to the corporation, reducing corporate tax.Not deductible; paid from after-tax corporate profits.
CPPCreates CPP contributions (cost now, benefit later).No CPP contributions.
RRSP roomGenerates RRSP contribution room.Does not generate RRSP room.
Payroll administrationRequires source deductions and a T4.Simpler; reported on a T5.
Income smoothingFixed once declared for the period.Flexible timing of withdrawals.

This is a modelling decision, not a rule of thumb. The optimal salary-dividend mix changes with your income level, your need for RRSP room and CPP, whether the corporation needs to retain earnings, and your personal cash needs. We run the numbers for each owner-client every year and recommend the split that minimizes total corporate-plus-personal tax for your situation. Corporate Tax Planning →

13. What You Cannot Deduct

Knowing the disallowed items prevents the adjustments and interest that follow a reassessment. These are the costs CRA routinely denies.

Not DeductibleWhy
Personal and living expensesNot incurred to earn business income.
The personal-use portion of any mixed expenseOnly the business share is claimable.
Clothing for everyday wearEven if worn to work; only specialized protective or uniform gear qualifies.
Federal income tax, penalties and most finesIncome tax itself and statutory penalties are not deductible.
Club dues and recreational facility feesGolf and dining-club memberships are specifically denied.
Principal portion of loan or lease paymentsOnly interest (and CCA on owned assets) is deductible, not principal.
The non-deductible half of meals and entertainmentThe 50% that the limit removes.
Capital purchases (in full, in year one)Deducted over time through CCA, not all at once, except where immediate expensing applies.

Drawing money from your corporation is not the same as deducting an expense. Taking funds out as a shareholder draw does not create a deduction and, if not handled correctly through salary, dividends or a properly documented loan, can trigger a shareholder-benefit assessment. This is one of the most common and most expensive errors we correct for new incorporated clients.

14. Records CRA Expects You to Keep

A deduction is only as strong as the record behind it. CRA can ask you to support any claim, and the burden is on you to prove it.

RecordRequirement
Receipts and invoicesOriginal supplier documents showing item, amount, date and vendor. Statements alone are insufficient.
Mileage logbookDate, destination, purpose and kilometres for business driving.
Home-office calculationThe square-footage basis and the supporting utility, rent or property-cost bills.
Payroll recordsPay history, remittances, T4/T5 slips and supporting calculations.
Bank and credit-card statementsReconciled to the books; corroborating, not a substitute for receipts.
Retention periodGenerally six years from the end of the tax year to which the records relate.

Clean books are the cheapest insurance you can buy. The cost of organized monthly bookkeeping is a fraction of the cost of reconstructing a year under audit pressure, and reconstructed records are always weaker. Our bookkeeping clients walk into any CRA review with every deduction already supported.

15. Master Deduction Checklist

Run through this list at year-end. Every line is a deduction Canadian small businesses routinely miss.

Business-use share of vehicle: fuel, insurance, repairs, lease or interest, CCA
Mileage logbook completed for the year
Home-office share of rent or property costs, utilities, insurance
Client and travel meals (at 50%)
All-staff event meals (at 100%, within the annual limit)
Capital assets recorded for CCA: equipment, computers, furniture, vehicles
Immediate-expensing and accelerated first-year claims reviewed
Salaries and the employer share of CPP and EI
Reasonable, documented wages to family members who actually work
Accounting, bookkeeping and business legal fees
Software subscriptions and online tools
Bank charges and merchant-processing fees
Business-use share of phone and internet
Online advertising, website and print marketing
Business travel, lodging and conventions (within the two-per-year limit)
Commercial and professional liability insurance
Interest on business loans and lines of credit
GST/HST input tax credits with valid supplier numbers on file
Salary-versus-dividend mix modelled for the owner
Six years of receipts and records retained and organized

Download the 2026 Deduction Checklist (PDF)

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Frequently Asked Questions: 2026 Business Deductions

What is the CRA mileage rate for 2026?
For the provinces, including Ontario, the 2026 prescribed rate is 73¢ per kilometre for the first 5,000 business kilometres and 67¢ per kilometre after that. In the territories the rates are 77¢ and 71¢. This rate is a tax-free reimbursement benchmark for employees, not a deduction method for self-employed owners, who must use actual expenses.
Can I write off my car if I am self-employed?
Yes, but only the business-use portion of actual costs, fuel, insurance, repairs, lease or loan interest and CCA, multiplied by your business-use percentage. A self-employed owner cannot simply apply the per-kilometre rate. You need a mileage logbook to establish the percentage.
How much of a business meal can I deduct?
Generally 50% of the cost of food, beverages, tax and tip. The main exception is an event open to all employees at a location, which can be 100% deductible within CRA's annual limit, and meals you bill through to a client and itemize on your invoice.
What is the maximum CCA cost for a passenger vehicle in 2026?
For a vehicle acquired on or after January 1, 2026, the Class 10.1 capital cost ceiling is $39,000 before tax. For an eligible zero-emission passenger vehicle (Class 54) the ceiling is $61,000 before tax. CCA can only be claimed on cost up to these limits.
What is the maximum deductible lease cost for a vehicle in 2026?
$1,100 per month before tax for a passenger vehicle. Deductible loan interest on a passenger-vehicle loan is capped at $350 per month. Both limits apply to arrangements entered into on or after January 1, 2026.
Can I deduct my home office?
Yes. You can deduct the business-use share of rent, utilities, insurance and, for owners, property tax and mortgage interest. The share is normally the workspace area divided by the home's total area. The home-office deduction cannot create a business loss, but the unused portion carries forward.
Should I claim CCA on a home I own and work from?
Usually not. Claiming CCA on the business portion of your home can erode part of the principal-residence exemption when you sell, often costing more in future capital-gains tax than the annual CCA saves. We generally advise owners to claim operating costs and skip CCA on the residence.
What are the 2026 CPP contribution limits?
The first earnings ceiling is $74,600 with a $3,500 basic exemption and a 5.95% rate each for employee and employer, for a maximum base contribution of $4,230.45 each. The second ceiling (CPP2) is $85,000, with a 4.00% rate each on earnings between the ceilings, to a maximum of $416.00 each.
What are the 2026 EI limits?
Maximum insurable earnings are $68,900. The employee premium rate is 1.63% to a maximum premium of $1,123.07, and the employer pays 1.4 times the employee amount. EI does not normally apply to an owner who controls more than 40% of the corporation's voting shares.
Do self-employed people pay both halves of CPP?
Yes. A sole proprietor pays the employee and employer portions on net self-employment income, an effective base rate of 11.90% up to the first ceiling, plus CPP2 where earnings are higher. It is reconciled on the personal tax return rather than through payroll.
Can I pay my spouse or child from my business?
Yes, if the wage is for work actually performed, at a rate you would pay an unrelated person, and is genuinely paid with proper payroll. Reasonable, documented family wages are a legitimate deduction. Undocumented or inflated amounts are a common audit adjustment.
Are software subscriptions deductible?
Yes. Accounting, CRM, design and productivity subscriptions used to run the business are fully deductible in the year incurred. Keep the invoices; the deduction is straightforward when the business purpose is clear.
Is online advertising fully deductible?
Advertising on search and social platforms is generally fully deductible when incurred to earn business income. Advertising directed at the Canadian market through certain non-Canadian newspapers or broadcasters can be restricted, but mainstream digital platform advertising is not affected.
How many conventions can I deduct per year?
Up to two conventions per year, provided they relate to your business and are held within the territory the sponsoring organization normally operates. Travel and lodging for those conventions are deductible; meals at them remain subject to the 50% limit.
Can I deduct business travel that includes some personal days?
Only the business portion. If the main purpose of the trip is business, business-day costs are deductible and personal days are not. If the main purpose is personal, the travel itself may be denied. Keep the agenda or registration that proves the business purpose.
Is life insurance deductible for my business?
Generally no. The narrow exception is where a lender requires a life-insurance policy as collateral for a business loan, in which case part of the premium may be deductible. Most owner life-insurance premiums are not a business deduction.
What is an input tax credit?
If you are registered for GST/HST, an input tax credit recovers the GST/HST you paid on business purchases. It offsets the tax you collected on sales. ITCs require valid receipts showing the supplier's GST/HST number and the tax charged. ITCs on meals and entertainment are generally limited to 50%.
When do I have to register for GST/HST?
Once your worldwide taxable revenue exceeds $30,000 over four consecutive calendar quarters, or in a single quarter, you must register. You can register voluntarily below the threshold, which lets you claim input tax credits earlier.
Is it better to pay myself salary or dividends?
It depends on your numbers. Salary is deductible to the corporation and builds CPP and RRSP room; dividends are simpler and avoid CPP but are paid from after-tax profits. The optimal mix changes each year with your income and goals, which is why we model it annually for owner-clients.
Can I deduct the full cost of equipment I bought this year?
Often yes, but not automatically. Capital assets are normally depreciated through CCA over several years. However, CCPCs have access to immediate expensing and accelerated first-year measures on eligible property that can allow a much larger or full deduction in year one. We calculate the optimal claim per asset.
Are bank fees and interest deductible?
Business bank charges and merchant-processing fees are fully deductible. Interest is deductible when the borrowed money was used to earn business income. The principal portion of any loan or lease payment is never deductible, only the interest, plus CCA on owned assets.
Can I write off clothing for work?
Only specialized protective gear or a genuine uniform. Ordinary business clothing that could be worn day to day is a personal expense and is not deductible, even if you only wear it for work.
Are penalties and fines deductible?
No. Income tax itself, most government fines and statutory penalties are specifically non-deductible. This includes late-filing and late-remittance penalties, which is one more reason to keep filings and remittances current.
Can I deduct golf or club memberships if I meet clients there?
No. Dues for golf, dining and recreational clubs are specifically denied, even when used for business entertaining. A meal purchased during a client meeting may still qualify at 50%, but the membership itself is not deductible.
What happens if I take money out of my corporation without paying it as salary or dividends?
An undocumented withdrawal can be assessed as a shareholder benefit and taxed in your hands, with no offsetting corporate deduction. Money out of a corporation should be structured as salary, dividends or a properly documented shareholder loan. This is a frequent and costly error we correct for new clients.
How long do I have to keep my records?
Generally six years from the end of the tax year the records relate to. Keep original receipts and invoices, your mileage log, payroll records and the support for your home-office and vehicle percentages. Statements alone are not enough to support a deduction.
Can a deduction create a business loss I can use?
Most operating expenses can produce or increase a business loss that may be applied against other income or carried to other years. The home-office deduction is the main exception: it cannot create a loss, but the unused amount carries forward to a future year of the same business.
Do these 2026 figures apply across Canada?
The federal figures in this guide, mileage rates, vehicle ceilings, CPP, EI and the GST/HST threshold, apply nationally. Provincial corporate tax rates and certain provincial credits differ by province. We file for clients across Ontario and Canada and apply the correct provincial treatment for each.
Will these amounts change during the year?
The annual dollar limits are set for the 2026 tax year, but CRA's prescribed interest rate changes quarterly and indexed amounts are updated each year. Always confirm a figure against the latest CRA release before relying on it for a filing, or ask us.
How much does it cost to have you handle my business taxes?
We work on fixed flat fees with no hourly billing. A T2 corporate return starts from $400, and CRA audit support is included free for every client. You can get an exact quote in under a minute. Know Your Exact Fee →

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