SR&ED Tax Incentive Calculator · Canada · Fiscal Year 2025
SR&ED Claim Estimator
Overhead method
Province / territory
Ontario
Ontario Innovation Tax Credit (OITC): 8% · 100% refundable · Max $3M expenditures
Coordinate with CT23 schedule on T2 return
Employees
| Name / role | Category | Annual salary ($) | SR&ED % time | Eligible salary |
|---|
Specified employee salary is capped at 5× YMPE = $368,200 (2025) on the SR&ED-allocated portion. Employer CPP/EI contributions on SR&ED salary also qualify.
Subcontractors
| Name / entity | Arm's length? | Contract amount ($) | SR&ED alloc. % | Eligible amount |
|---|
Arm's length: 80% of SR&ED contract amount qualifies (ITA s.37). Non-arm's length: 100% of actual SR&ED cost (must be demonstrable).
Materials & other direct costs
| Description | Amount ($) | SR&ED alloc. % | Eligible amount |
|---|
Includes consumed/transformed materials, prototypes, cloud & software licenses, equipment leases, and other directly attributable SR&ED costs.