Skip to main content
DeductlyCA
ProgramsHow it worksTry it liveLearnWatchPricing
FRLog inStart free
A monthly digest

New programs, in your inbox.

We are in beta. Drop your email and we will write when the first digest is ready. Monthly cadence, easy unsubscribe.

Deductly CA

Every Canadian grant, tax credit, and deduction your business qualifies for. In one ranked list.

Start the assessment
Product
  • Eligibility quiz
  • All programs
  • Watch (live changes)
  • The funding journey
  • When to apply
  • Stackability map
  • Document checklist
  • Calculators
  • Tracker
  • Learn
  • Pricing
Resources
  • For accountants
  • Public API
  • RSS feed
  • What's new
  • Roadmap
  • Press
  • vs ChatGPT
  • vs Benefits Finder
By province
  • Ontario
  • British Columbia
  • Alberta
  • Quebec
  • Manitoba
  • Saskatchewan
By industry
  • Technology & Software
  • Manufacturing
  • Retail & E-commerce
  • Food & Beverage
  • Professional Services
  • Creative & Media
For
Women entrepreneursNewcomersIndigenous businessYouth foundersBlack entrepreneursFirst-hire employers
Recent guides
Deductions · 8 min

Every deduction Canadian small businesses miss

Grants · 10 min

8 grants every Canadian founder should know about

Deductions · 7 min

The Small Business Deduction, fully explained

© 2026 DeductlyPrivacyTermsAboutFrançaisContact
All systems operational

Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.

DeductlyCA
ProgramsHow it worksTry it liveLearnWatchPricing
FRLog inStart free
All programs
DEDUCTIONAll of Canada

Small Business Deduction (SBD)

Last verified: June 2026

Incorporated Canadian businesses pay a reduced federal tax rate of 9% on the first $500,000 of active business income: instead of the standard 15% corporate rate. That's a 6% savings on every dollar of profit up to $500K.

See if I qualify
Estimated value
Up to $30,000 per year in tax savings
Approval likelihood
High
Ready to apply score
85/100
Documents needed
3

Eligibility

  • Business types:incorporated
  • Industries:All industries
  • Provinces:All of Canada

What you'll need

  • T2 Corporation Income Tax Return
  • Schedule 7 (Aggregate Investment Income)
  • Corporate financial statements

How to apply

  1. 1Confirm CCPC status with your accountant
  2. 2File T2 return claiming the SBD
  3. 3Ensure taxable capital is below $15M
  4. 4Review passive income rules if applicable
Deadline:Annual: file with your T2 return

Is your business a fit for Small Business Deduction (SBD)?

Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.

Check my eligibility

Related programs

DEDUCTION

Home Office Expense Deduction

Typically $3,000–$12,000 per year

DEDUCTION

Motor Vehicle Expense Deduction

Typically $4,000–$15,000 per year

DEDUCTION

Accelerated Investment Incentive (AII)

30–100% of asset cost in year 1

A monthly digest

New programs, in your inbox.

We are in beta. Drop your email and we will write when the first digest is ready. Monthly cadence, easy unsubscribe.

Deductly CA

Every Canadian grant, tax credit, and deduction your business qualifies for. In one ranked list.

Start the assessment
Product
  • Eligibility quiz
  • All programs
  • Watch (live changes)
  • The funding journey
  • When to apply
  • Stackability map
  • Document checklist
  • Calculators
  • Tracker
  • Learn
  • Pricing
Resources
  • For accountants
  • Public API
  • RSS feed
  • What's new
  • Roadmap
  • Press
  • vs ChatGPT
  • vs Benefits Finder
By province
  • Ontario
  • British Columbia
  • Alberta
  • Quebec
  • Manitoba
  • Saskatchewan
By industry
  • Technology & Software
  • Manufacturing
  • Retail & E-commerce
  • Food & Beverage
  • Professional Services
  • Creative & Media
For
Women entrepreneursNewcomersIndigenous businessYouth foundersBlack entrepreneursFirst-hire employers
Recent guides
Deductions · 8 min

Every deduction Canadian small businesses miss

Grants · 10 min

8 grants every Canadian founder should know about

Deductions · 7 min

The Small Business Deduction, fully explained

© 2026 DeductlyPrivacyTermsAboutFrançaisContact
All systems operational

Deductly is a discovery tool, not a tax filer. Information is provided for educational purposes. Always confirm program details and eligibility with a qualified Canadian accountant before applying or claiming any benefit.