Cost of Doing Business

The lowest overall business costs in the G7

In Ontario, you’ll benefit from highly competitive business costs that can boost your company’s growth and profitability
Overall Business Costs Index

Corporate Tax Advantage

With a total combined provincial 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.
Combined Federal-Ontario general corporate income tax rate
Marginal Effective Tax Rate (METR) on New Business

Manufacturing Tax Advantage 

Combined Federal State/Provincial Corporate Income Tax Rate in Manufacturing

Foreign Exchange

USD/CAD Historical Exchange Rates
Source: Bank of Canada’s Annual Average Exchange Rates
USD/CAD Exchange Forecast
Source: Scotiabank Foreign Exchange Outlook, December 2016

R&D Cost Advantage

Ontario's R&D Cost Advantage vs G7

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.
  • Our 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.