Lower Taxes for Small Business and Tax Fairness for our Middle Class – Liberal Action
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Lower Taxes for Small Business and Tax Fairness for our Middle Class

Lower Taxes for Small Business and Tax Fairness for our Middle Class

Small businesses drive the Canadian economy — creating jobs, supporting our communities and making them better places to call home.

That’s why, as promised, the Liberal government will lower the small business tax rate from 10.5% to 9% over the next two years, providing a small business with up to $7,500 in federal tax savings per year that can be reinvested to help them grow.

By cutting the small business tax rate to 9%, Canada will continue to have the lowest tax rate in the G7 by far — and the 4th lowest throughout the OECD. This is possible because we know we can make the tax system fair, ensuring low taxes are used to invest, grow, and create jobs.

This important change will take place alongside other changes to the tax system to make it more fair — changes we’ve sought input on over the past several months. We listened to small business owners, professionals, farmers and fishers to make sure any changes work best for Canadians.

The Liberal government will continue to roll out its tax fairness plan — based on five key principles:

  • Support small businesses and their contributions to our communities and our economy.
  • Keep taxes low for small business and support owners to invest in their growth, create jobs, strengthen entrepreneurship and grow our economy.
  • Avoid creating unnecessary red tape for hard-working small businesses.
  • Recognize the importance of maintaining family farms and work with Canadians to ensure we don’t affect the transfer of a family business.
  • Conduct a gender-based analysis on finalized proposals, to ensure any changes to the tax system promote gender equity.

Canadians elected us to build an economy that works for everyone. These tax measures will help us do that.

Add your name now and support the Liberal plan to lower taxes for Small Business and deliver tax fairness for the middle class.

Information on Contributions

Tax Credits

All Canadians with taxable income receive generous tax credits when they donate to the Liberal Party of Canada. The size of your reduction in taxes payable depends on the sum of all your political contributions.

If you have already made a contribution this year, please use the table below to calculate your cumulative tax credit.

  • Donations between 0 and $400: give you a 75 per cent refund
  • Donations between $400 and $750: give you $300 plus 50 per cent of any amount over $400
  • Donations over $750: give you $475 plus 33 1/3 per cent of any amount over $750 up to a maximum of $650 per year

Limits on Contributions

Only Canadian citizens or permanent residents may make political contributions, in each of the following amounts:

  • No more than $1,575 in any calendar year to each registered political party
  • No more than $1,575 in total in any calendar year to the combined entities of each registered political party (Electoral District Associations, Nomination Contestants and Candidate campaigns)
  • No more than $1,575 in total between all registered leadership contestants in a particular leadership contest.

For more information about tax credits please visit the Canada Revenue Agency website and for more information about contribution limits, please visit Elections Canada.