1. Alberta’s small business rate was reduced from 3% to 2% on January 1, 2017, to help small businesses offset the additional cost of Alberta’s carbon tax. Despite the repeal of the province’s carbon tax, effective May 30, 2019, the budget confirms that the small business rate will remain 2%. 2. The general corporate tax rate applies to active business income in excess of the business limit. See also Corporate Taxation of Investment Income (1) NL, NT, NU and PE use the federal small business limit. (2) Nova Scotia provides a corporate tax holiday under s. 42 of their Income Tax Act for the first 3 taxation years of a new small business after incorporation. As a result of this change, Alberta will have the lowest general corporate tax rate of all Canadian provinces, which currently range from a low of 11.5% in Ontario to a high of 16% in Prince Edward Island and Nova Scotia. Businesses may have to account for this tax rate decrease in their upcoming financial