Canadian SR&ED calculator
Canadian SR&ED tax credit calculator.
Estimate federal and provincial SR&ED tax credits for a Canadian business in any industry. Enter salary, contractor, material, and equipment costs connected to potentially eligible R&D.
Results update instantly and separate the federal and provincial amounts using the rate and province you select.
Build the estimate
Amounts in CAD
Canadian-controlled private corporations earn 35% on up to $6 million of qualified expenditures a year and 15% above that. The $6 million shrinks when prior-year taxable capital is between $15 million and $75 million.
Estimated SR&ED tax credits
$104,118Estimated credits $104,118: federal $83,398, Ontario $20,720.
- Federal ITC at 35%
- $83,398
- Ontario credit
- $20,720
Expenditure limit for the 35% rate: $6,000,000. Costs above it earn 15%.
Discuss my medical research projectThis is an estimate, not tax advice. The federal credit is calculated after subtracting the provincial credit. Ethan reviews the estimate with you on a consultation. See how the estimate works below.
Treat it as a rough number.
A real claim depends on things the calculator can’t see: which parts of the work were experimental, which company should claim, and any grants or other funding that reduce the costs. Ethan can go through your estimate with you on a call.
SR&ED calculator questions
What does this SR&ED calculator estimate?
It estimates the federal investment tax credit and the selected provincial or territorial credit using the salary, contractor, material, and equipment cost assumptions you enter.
Can businesses in any industry use it?
Yes. SR&ED is not limited to one industry. Eligibility depends on the experimental work, claimant, expenditures, assistance, evidence, and filing position.
Which claimant type should I select?
Choose a private corporation (CCPC) if the claimant is a Canadian-controlled private corporation, which generally includes medical professional corporations. Choose a public corporation for an eligible Canadian public corporation: resident in Canada, public, and not controlled by non-residents. If neither applies, or you are unsure, choose other claimant, which uses the 15% basic rate. Your accountant can confirm the status.
How should I use the estimate?
Use it to size a potential opportunity and compare assumptions. A claim review then confirms the underlying work, costs, company facts, assistance, evidence, and applicable program rules.
Does the calculator account for grants or other assistance?
Only the provincial credit. Provincial credits count as government assistance, so the calculator subtracts the provincial amount before working out the federal credit. Grants, contributions, and other assistance are not included and can reduce the costs used for both credits. Review each funding agreement before relying on the estimate.
Is the estimate the same as a cash refund?
Not necessarily. For a qualifying Canadian-controlled private corporation, the 35% credit is generally fully refundable on current expenditures and 40% refundable on capital expenditures. Eligible Canadian public corporations get the same refunds on the 35% credit. Credits earned at 15% above the limit are 40% refundable for a qualifying Canadian-controlled private corporation, and otherwise only reduce tax owing. Quebec’s CRIC is fully refundable. Refundability depends on the claimant, provincial program, expenditure limit, taxable income, and other company facts. The calculator shows an illustration, not a filed tax position.
How the estimate works
View assumptions and official sources
Federal model
Uses 35% on qualified expenditures up to the expenditure limit and 15% above it (15% throughout for other claimants), a 55% prescribed proxy amount on eligible salary, and 80% of qualifying arm's-length contract payments. The provincial credit is subtracted first, because it counts as government assistance.
Expenditure limit
For tax years beginning after December 15, 2024, the limit is $6 million (it was $3 million). It falls in a straight line to zero as prior-year taxable capital (private corporations) or three-year average annual revenue (public corporations) rises from $15 million to $75 million. A private corporation can elect to use the revenue test instead. Associated or consolidated groups share one limit; the calculator assumes a single corporation.
Capital costs
Equipment and other capital property acquired after December 15, 2024 can qualify again if it is used all or substantially all for SR&ED. It is added to the federal amount but not to the proxy. Ontario’s, Manitoba’s and Quebec’s credits include it. Other provincial credits are calculated without it, because each province’s treatment was not confirmed.
Provincial model
Shows published refundable base rates and common caps. Company size, taxable income, prior spending, and provincial rules can change the result.
Quebec CRIC (simplified)
Applies 30% to the first $1 million of eligible salaries, half of Quebec subcontract payments and capital property above a $50,000 minimum exclusion, and 20% above that. The actual threshold can be higher, and materials are not included. The credit is fully refundable.
Sources and review date
Rates and assumptions were reviewed against government guidance on November 5, 2026. Program rules and forms can change.