Quebec Just Cut Your Small Business Tax Rate to 2.2%: What Incorporated Owners Must Do Before Year-End
Quebec's Information Bulletin 2026-3 cuts the provincial small business rate from 3.2% to 2.2% for taxation years beginning after April 29, 2026, lowering the combined rate on the first $500,000 of active business income to 11.2% and saving a qualifying CCPC up to $5,000 a year. Calendar-year corporations wait until 2027, the 5,500 remunerated-hours test still applies, and a matching increase in non-eligible dividend tax changes the salary-versus-dividend math.
