Canadian businesses experienced a slight uptick in profits during 2024, according to the latest data from Statistics Canada. This growth occurred even as the amount paid in corporate income taxes saw a sharp increase. Enterprises across the country reported a combined $620.3 billion in net income before taxes (NIBT), marking a $17.5 billion, or 2.9%, rise from the previous year.
Ontario emerged as the frontrunner in profit growth, with companies in the province seeing a $14.9 billion, or 6.1%, increase. Overall, six of the thirteen provinces and territories recorded profit gains. Micro-enterprises, defined as those with fewer than 10 employees, were a primary driver of this growth, with their collective pre-tax income jumping by $24.4 billion, or 15.2%. However, this was partially offset by a decline in profits among medium-sized businesses, where net income before taxes fell by $5.4 billion, or 6.9%.
The miscellaneous intermediation sector, which includes firms primarily involved in trading financial contracts, made the largest contribution to overall profit growth. Net income before taxes in this sector rose by $11.8 billion, or 19%, largely attributed to stronger equity markets and gains from fair-value adjustments. The real estate industry also performed well, with profits increasing by $7.1 billion, or 19%, spurred by rising rental prices, which climbed 8.1% between 2023 and 2024. However, the transportation, postal, and courier services industry saw a decline in net income before taxes of $9.5 billion, reflecting weaker profitability across the sector.
The federal corporate tax rate is 15% for general corporations and 9% for Canadian-Controlled Private Corporations (CCPCs) on the first $500,000 of active income. Combined federal and provincial rates can range from 9% to 31%, depending on the province. The Canadian economy is expected to see modest growth in 2026, with projections around 1% to 1.8%. Ongoing trade tensions with the United States and global economic uncertainties continue to shape the economic landscape.
