Corporate Tax Deadline Canada 2026 — T2 Filing Guide for Small Business

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T2 Corporate Tax Filing Deadlines — Canada 2026

Corporation Type	T2 Filing Deadline	Balance Due Date
December 31 year-end (most common)	June 30, 2026	March 31, 2026
All other fiscal year-ends	6 months after fiscal year-end	3 months after fiscal year-end
CCPC with active business income ≤ $500K	6 months after year-end	3 months after year-end
Other private corporations	6 months after year-end	2 months after year-end

Key distinction: The T2 return is due 6 months after fiscal year-end. The balance owing is due either 2 or 3 months after fiscal year-end (before the return is due). If you wait until the filing deadline to pay, you'll owe interest on the balance from the earlier payment deadline.

When Is the Corporate Tax Balance Due?

Canadian-Controlled Private Corporations (CCPCs)

If your corporation is a CCPC that earned active business income taxed at the small business rate, your balance owing is due 3 months after your fiscal year-end:

December 31 year-end → balance due March 31
March 31 year-end → balance due June 30
June 30 year-end → balance due September 30
September 30 year-end → balance due December 31

Other Corporations

All other Canadian corporations — including CCPCs that don't meet the small business conditions — must pay their balance 2 months after fiscal year-end. This tighter deadline catches many business owners off guard.

CRA interest on late balance: CRA charges prescribed interest (currently approximately 10% per year, compounded daily) on unpaid corporate tax balances from the day after the payment due date. This is not deductible. Pay on time.

Corporate Tax Instalment Payments

Corporations with federal corporate tax payable of more than $3,000 in the current or prior year must pay monthly tax instalments throughout the year:

Instalments are due on the last day of each month
Three methods to calculate instalments: prior year method, current year method, or first preceding year method
The prior year method is simplest: divide last year's tax by 12 and pay monthly
Underpayment of instalments results in instalment interest charged from the due date

New corporations in their first year are generally not required to make instalments — they pay the full balance 2–3 months after their first fiscal year-end. But in year two, instalments typically begin.

Canadian Corporate Tax Rates — 2026

Province	Federal Small Biz Rate	Provincial Small Biz Rate	Combined Rate
Alberta	9%	2%	11%
BC	9%	2%	11%
Ontario	9%	3.2%	12.2%
Quebec	9%	3.2%	12.2%
Saskatchewan	9%	1%	10%
Manitoba	9%	0%	9%
Nova Scotia	9%	2.5%	11.5%

The small business rate applies to the first $500,000 of active business income earned by a CCPC. Income above $500,000 is taxed at the general rate (approximately 26.5% combined federally and provincially in Ontario).

T2 Filing Requirements

Every corporation incorporated in Canada must file a T2 corporate tax return for each taxation year — even if the corporation had no income, is tax-exempt, or is dormant. The T2 return includes:

Financial statements (income statement, balance sheet)
Schedule 1 — Net income for tax purposes (reconciling accounting income to taxable income)
Schedule 8 — Capital cost allowance (CCA) schedule for depreciable assets
Schedule 100 — Balance sheet information
Schedule 125 — Income statement information
Schedule 50 — Shareholder information (for private corporations)
Various other schedules depending on transactions (dividends paid, intercompany transactions, etc.)

File electronically: CRA requires corporations with revenues over $1 million to file T2 electronically via CRA-certified tax software (TaxPrep, CCH iFirm, ProFile, etc.). CRA's EFILE system is the most reliable filing method for all corporations.

Frequently Asked Questions

When is the corporate tax filing deadline for a December 31 year-end?

For a December 31 fiscal year-end, the T2 return must be filed by June 30 of the following year. However, the balance owing (if any) is due March 31 for CCPCs qualifying for the small business rate — 3 months earlier than the filing deadline.

Does a dormant corporation need to file a T2?

Yes. Every Canadian corporation must file a T2 return annually, even if it had zero revenue, zero expenses, and zero activity. Failure to file carries a minimum penalty of $500 per month to a maximum of $3,000 for a dormant corporation.

Can a corporation choose its fiscal year-end?

Yes, for the first year. A corporation can choose any fiscal year-end in its first year of operation. After that, CRA approval is required to change it. Many businesses choose December 31 (calendar year) for simplicity, but other dates can have tax and cash flow advantages.

What is the penalty for filing a T2 late?

The late filing penalty is 5% of the balance owing, plus 1% of the balance owing for each complete month late (up to 12 months). If you've received a demand to file or had a late filing penalty in the previous 3 years, the penalty doubles to 10% plus 2% per month.