Corporation (CCPC) vs Sole proprietorship — tax comparison 2026
Compare the tax burden of the two legal forms with your own numbers, using each calculator below.
| Corporation (CCPC) | Sole proprietorship | |
|---|---|---|
| Description | Small Business Deduction: 9% federal on first CAD 500k, then 15% (provincial excluded). | Federal progressive income tax + CPP. Real income (provincial excluded). |
Official sources
- Canada Revenue Agency (CRA) — Corporate & personal income tax