Important assumptions & caveats
- Calculations assume a Canadian-Controlled Private Corporation (CCPC) eligible for the refundable 35% federal ITC on the first $6M of qualified expenditures (increased from $3M by Budget 2025, for tax years beginning after December 15, 2024). Non-CCPCs and amounts above the expenditure limit receive 15%.
- The proxy method is applied for overhead (55% of eligible salaries). Use of the traditional method may yield different results.
- Subcontractor amounts are reduced by 20% per CRA guidance for arms-length contractors. Non-arms-length contractor rules differ.
- Provincial credits are deducted from the federal ITC base as government assistance — federal ITC is calculated on (Qualified Expenditures − Provincial Credits) × 35%.
- Prince Edward Island, Northwest Territories, and Nunavut do not currently offer a provincial/territorial SR&ED investment tax credit — they are shown with a $0 provincial credit but still receive the federal ITC. Quebec has its own SR&ED program but is excluded here as Banhall does not currently serve Quebec clients.
- Alberta uses a two-tier Innovation Employment Grant (IEG): 8% on R&D spending up to the company's 2-year average base, and an enhanced 20% on spending that exceeds that base (capped at $4M total R&D). This calculator applies the conservative 8% base rate. Companies significantly growing their R&D investment may qualify for the 20% rate on incremental spending — consult a specialist to determine your base level.
- Manitoba offers a 15% R&D credit; however only 7.5% is refundable for in-house R&D (the remaining 7.5% is non-refundable and offsets taxes owing). The full 15% is shown here for province-to-province comparability.
- This is an estimate only. Actual credits depend on technical eligibility, expenditure limits, association rules, and other factors. Consult a qualified SR&ED specialist or tax advisor.
Canadian R&D Tax Incentive
SR&ED Investment Tax Credit Calculator
Estimate your federal and provincial tax credits across all participating Canadian provinces and territories. Enter your eligible labour, subcontractor, and material expenditures below.
1Salaries & Wages
Enter each employee's annual wage and the percentage of their time spent on eligible SR&ED activities.
Employee
Annual Wage
SR&ED %
SR&ED Payroll
Total SR&ED Wages
$0
2Subcontractors
Eligible subcontractor expenses are claimable at 80% — a standard 20% adjustment is applied automatically.
Description
Amount Paid
Total Contractor Spend
$0
3Materials
Materials directly consumed or transformed during the SR&ED work.
Description
Amount Paid
Total SR&ED Materials
$0
Your estimate is ready
See your SR&ED credits across all 9 jurisdictions
Enter your details and we'll show you your estimated federal and provincial Investment Tax Credits.
Your information stays private. Banhall never shares or sells your data.
Your SR&ED estimate
Your tax credits
Important assumptions & caveats
- Calculations assume a Canadian-Controlled Private Corporation (CCPC) eligible for the refundable 35% federal ITC on the first $6M of qualified expenditures (increased from $3M by Budget 2025, for tax years beginning after December 15, 2024). Non-CCPCs and amounts above the expenditure limit receive 15%.
- The proxy method is applied for overhead (55% of eligible salaries). Use of the traditional method may yield different results.
- Subcontractor amounts are reduced by 20% per CRA guidance for arms-length contractors. Non-arms-length contractor rules differ.
- Provincial credits are deducted from the federal ITC base as government assistance — federal ITC is calculated on (Qualified Expenditures − Provincial Credits) × 35%.
- Prince Edward Island, Northwest Territories, and Nunavut do not currently offer a provincial/territorial SR&ED investment tax credit — they are shown with a $0 provincial credit but still receive the federal ITC. Quebec has its own SR&ED program but is excluded here as Banhall does not currently serve Quebec clients.
- Alberta uses a two-tier Innovation Employment Grant (IEG): 8% on R&D spending up to the company's 2-year average base, and an enhanced 20% on spending that exceeds that base (capped at $4M total R&D). This calculator applies the conservative 8% base rate. Companies significantly growing their R&D investment may qualify for the 20% rate on incremental spending — consult a specialist to determine your base level.
- Manitoba offers a 15% R&D credit; however only 7.5% is refundable for in-house R&D (the remaining 7.5% is non-refundable and offsets taxes owing). The full 15% is shown here for province-to-province comparability.
- This is an estimate only. Actual credits depend on technical eligibility, expenditure limits, association rules, and other factors. Consult a qualified SR&ED specialist or tax advisor.
4Estimated Tax Credits
Combined SR&ED Investment Tax Credits across each participating jurisdiction.
Qualified Expenditures
$0
After proxy & contractor adjustments
Best Total Credit
$0
—
Effective Recovery Rate
0.0%
on qualified expenditures
Qualified Expenditures Breakdown
SR&ED Wages$0
Materials$0
Contractors$0
Contractor Adjustment (−20%)$0
Proxy Allowance (55% of wages)$0
Total Qualified Expenditures$0
| Jurisdiction | Provincial Credit | Federal ITC | Total Credit | Effective Rate |
|---|
★ Highest estimated total credit across all listed jurisdictions · * No provincial SR&ED credit — federal ITC only
⚑ Alberta shows the conservative 8% base rate. Companies whose R&D spending exceeds their 2-year average qualify for the enhanced 20% rate on incremental amounts — potentially up to $800K on $4M of R&D.
Manitoba: 15% shown; only 7.5% is refundable for in-house R&D.
