| Among the lowest tax rates in North America In Québec, the corporate tax rate of 29.90% is one of the lowest in North America Québec's tax system is also very competitive regarding job creation and capital investment. | Comparison of Tax Rates, 2009/2010
Québec, Other Provinces and American States
Non-Manufacturing Companies | | Effective Tax Rate (%) | | | Federal(1) | Province/
State | TOTAL | | Québec | 18.00 | 11.90 | 29.90 | | Ontario | 18.00 | 14.00 | 32.00 | | Washington(3) | 35.00 | -- | 35.00 | | Texas(3) | 34.65 | 1.00(2) | 35.65 | | Florida(3) | 33.08 | 5.50 | 38.58 | | Georgia(3) | 32.90 | 6.00 | 38.90 | | California(3) | 31.91 | 8.84 | 40.75 | [1] In Canada, the federal tax rate is 11% for Canadian-controlled private corporations with taxable income of less than CDN$500,000. Reduced rates also apply in some provinces for small businesses. The rate of 18% in 2010 will decline to 16.5% in 2011 and 15% as of 2012. [2] Texas has levied a 1% franchise margin tax. The tax applies to the lowest of the following three margins: (1) gross profit margin; (2) total income less remuneration; (3) 70% of total income. Since January 1st, 2009, companies with a income of less than $434,782 are exempted from the state tax. [3] 2009 rate
Source: Raymond Chabot Grant Thornton and Investissement Québec, April 2010.
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