An Ontario corporation files one return for both federal and Ontario corporate income tax: the T2, filed with the CRA, which also administers the Ontario tax. A T2 return is required for every tax year, even when the corporation has no tax to pay.
Filing deadline: six months after year-end
The T2 return is due within six months of the end of the corporation’s tax year. For a December 31 year-end, that is June 30.
Payment deadline: earlier than the filing deadline
| Corporation | Balance due |
|---|---|
| Most corporations | Two months after the tax year-end (the end of February for a December 31 year-end) |
| Canadian-controlled private corporations (CCPCs) that claim the small business deduction and meet the CRA’s conditions | Three months after the tax year-end (the end of March for a December 31 year-end) |
Interest runs on any balance that is not paid by the balance-due date, even when the return itself is filed on time.
Instalments
Corporations generally pay their income tax in instalments during the year: monthly, or quarterly for eligible small CCPCs, due on the last day of each month or quarter of the tax year. Instalments are generally not required for the corporation’s first tax year, or when its tax payable is $3,000 or less in either the current or the previous tax year. In those cases the full amount is still due by the balance-due date.
Ontario rates in brief
Active business income that qualifies for the small business deduction (generally the first $500,000 a year, shared among associated corporations) is taxed at a combined federal and Ontario rate of 12.2%: 9% federal and 3.2% Ontario. The 2026 Ontario Budget announced a cut in the Ontario rate to 2.2% from July 1, 2026, which brings the combined rate to 11.2%. For a tax year that straddles July 1, 2026, each rate applies in proportion to the number of days before and after that date. Other active business income is taxed at 26.5%: 15% federal and 11.5% Ontario.
What to prepare for the year-end
- A trial balance with reconciled bank, card and loan accounts.
- Fixed-asset additions and disposals for the year.
- Shareholder loan balances and any dividends paid.
- The year’s GST/HST and payroll filings, so the figures agree with the accounts.
How BMD Legacy helps
T2 corporate income-tax returns are quoted separately from the monthly packages, according to the corporation’s requirements. Monthly bookkeeping in QuickBooks Online keeps the year-end figures ready when the return is prepared. See GST/HST, payroll and corporate tax in Ontario.
Official sources
- CRA: When to file your corporation income tax return
- CRA: Due dates for corporate income tax payments (balance-due day)
- CRA: Who has to pay corporate income tax in instalments
- CRA: Corporation tax rates
- CRA: Ontario provincial corporation tax
- CRA: What’s new for corporations (Ontario lower rate, 2026 Budget)
Reviewed by the BMD Legacy Canada team on 14 October 2026. Update of 14 October 2026: the Ontario small business rate cut to 2.2% from July 1, 2026 and the instalment exemptions (first tax year; $3,000 or less in either year) were added, with official sources.
General information checked against Canada Revenue Agency guidance on 14 October 2026. It is not advice for your specific situation.