Tax updates.

2026

Northumberland businesses have until 31 December to use the regional investment credit

26 March 2026 · Ontario · Tax credits

The Regional Opportunities Investment Tax Credit expires effective 1 January 2027. Expenditures have to be incurred by 31 December 2026 to qualify.

It is a 10% refundable corporate income tax credit for a Canadian-controlled private corporation building, renovating or acquiring a commercial or industrial building in a designated region. Eligible expenditures run from just over $50,000 up to $500,000 per property in the year, so the largest credit is $45,000. Residential buildings do not qualify.

What it means. Northumberland County is a designated region, so this is one of the few provincial credits that applies here and not in Toronto or Ottawa. If you are putting up a shop, a shed, a barn conversion or any commercial structure and the work might land either side of the new year, the timing is now worth deciding deliberately rather than by when the contractor turns up. A $500,000 build finished in December is worth $45,000 more than the same build finished in January.

Ontario's small business rate falls to 2.2%

26 March 2026 · Ontario · Corporate tax

Effective 1 July 2026 the lower rate of Ontario corporation income tax drops from 3.2% to 2.2%, which takes the combined federal and Ontario small business rate to 11.2%. It is prorated for tax years straddling 1 July, so a year end other than 30 June gets part of the old rate and part of the new one.

What it means. Around $2,500 a year at $250,000 of active business income and up to $5,000 at $500,000. Worth knowing that Ontario also cut the non-eligible dividend tax credit from 2.99% to 1.99% effective 1 January 2027, which takes part of that back from anyone drawing profits as dividends rather than salary. The two changes pull in opposite directions, so if you are incorporated the mix is worth another look before your next year end rather than after it. See incorporated professionals.