Platform
Consulting
Resources
Pricing
Ontario small business deduction (SBD) - Ontario - Canada
Open

Ontario small business deduction (SBD)

Reduces income tax for eligible Ontario small businesses
Ontario Ministry of Finance (MOF)
Government of Ontario (ON)
Last Update: March 4, 2026
Funding available
No Condition
Timeline
  • Open continuously
Location
Ontario, Canada

Overview

The Ontario Small Business Deduction allows eligible Canadian-controlled private corporations (CCPCs) to reduce their Ontario basic income tax by applying a deduction rate of 8.3%, resulting in a lower effective tax rate of 3.2% on small business income. The program is designed to support small businesses by reducing their tax burden, with eligibility phased out for corporations with taxable capital in Canada over $50 million.

/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • No objectives are currently available
Eligible Funding
  • Up to 8.3% of project cost
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • All industries
Location
  • Ontario
Legal structures
  • For-profit business
Annual revenue
  • $ 50,000,000 maximum revenue
Organisation size
  • All organization sizes
Audience
  • Startups

Next steps

1
Determine your project
2
Validate your eligibility

Eligibility

Who is eligible?

  • Canadian-controlled private corporations (CCPCs) operating in Ontario

Who is not eligible

  • Corporations that are not Canadian-controlled private corporations (CCPCs) throughout the tax year.
  • CCPCs (including associated corporations) with taxable capital employed in Canada of $50 million or more in the previous tax year.

Eligible geographic areas

  • Ontario

Additional information

  • The Ontario small business deduction is calculated using the corporation's Ontario small business income and the small business deduction rate for the year.
  • The reduction and elimination of the deduction are based on the taxable capital employed in Canada during the previous tax year.
  • Ontario small business income is capped by the corporation's Ontario taxable income and is determined using the Ontario domestic factor.
  • Schedule 500 is used as a worksheet for calculation and does not need to be filed with the corporate tax return.

Frequently Asked Questions about the Ontario small business deduction (SBD) Program

Here are answers to the most common questions about the Ontario small business deduction (SBD). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Ontario small business deduction (SBD)?

The Ontario Small Business Deduction allows eligible Canadian-controlled private corporations (CCPCs) to reduce their Ontario basic income tax by applying a deduction rate of 8.3%, resulting in a lower effective tax rate of 3.2% on small business income. The program is designed to support small businesses by reducing their tax burden, with eligibility phased out for corporations with taxable capital in Canada over $50 million.

How much funding can be received?

Ontario small business deduction (SBD) Funds up to 8.3% of admissible expenses.

Who is eligible for the Ontario small business deduction (SBD) program?

To be eligible for the Ontario small business deduction (SBD) program, you must: Must be a Canadian-controlled private corporation (CCPC) throughout the tax year Taxable capital employed in Canada must not exceed $50 million in the previous tax year

Who can I contact for more information about the Ontario small business deduction (SBD)?

You can contact Ontario Ministry of Finance (MOF).

Where is the Ontario small business deduction (SBD) available?

The Ontario small business deduction (SBD) program is available the province of Ontario.

Is the Ontario small business deduction (SBD) a grant, loan, or tax credit?

Ontario small business deduction (SBD) is a Tax Credits

Who are the financial supporters of the Ontario small business deduction (SBD)?

Ontario small business deduction (SBD) is funded by Ontario Ministry of Finance (MOF), Government of Ontario (ON)

More programs like this