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R&D Tax Credit Refund Estimator

Estimate your SR&ED refund in Canada, your R&D tax incentive offset in Australia, or your US payroll tax credit offset.

Assumes a Canadian-controlled private corporation with taxable capital under C$15 million, current (not capital) expenditures, and spend that qualifies as SR&ED.

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How it works

Enter your eligible spend and the tool applies each country's published rate. Formulas:

  • Canada: refund = 35% × spend up to C$6,000,000. Spend above the limit earns a 15% credit, shown separately as non-refundable and not counted in the refund.
  • Australia: offset = (company tax rate + 18.5%) × notional R&D deductions up to A$150 million, when aggregated turnover is under A$20 million and no exempt entity controls you and notional deductions are at least A$20,000. Otherwise the offset is non-refundable and this tool shows zero cash.
  • United States: credit (Alternative Simplified method) = 14% × (spend − 50% × prior 3-year average), or 6% × spend when prior average is zero. Payroll offset = smallest of the credit, US$500,000 and your employer Social Security plus Medicare tax, and only for a qualified small business.

Rules and sources (checked 1 Nov 2026)

CountryRuleSource
Canada35% enhanced ITC, C$6M limit for tax years beginning after 15 Dec 2024CRA SR&ED updates, CRA ITC page
AustraliaRefundable offset = tax rate + 18.5% under A$20M turnover; premium to A$150MATO offset rates, ATO refundable offsets
USPayroll election up to $500,000; Social Security first, then Medicare; ASC ratesIRS payroll credit, Form 6765 instructions

Educational estimate, not tax advice. Eligibility, associated-company limits, taxable capital, provincial and state credits, timing and filing rules are not modeled. Confirm with a qualified adviser before you rely on a number.

Related guides

Worked example

A Canadian CCPC with C$500,000 of eligible current SR&ED spend: 35% × 500,000 = C$175,000 refund. An Australian company at a 25% rate with A$500,000 of notional deductions and turnover under A$20 million: 43.5% × 500,000 = A$217,500 offset, refundable. A US startup with US$500,000 of research expenses, no prior-year expenses, and US$150,000 of employer Social Security tax: credit is 6% × 500,000 = US$30,000, all of which can offset payroll tax.

Frequently asked questions

How much SR&ED refund can a Canadian startup get?
A Canadian-controlled private corporation earns a 35% investment tax credit on qualified SR&ED expenditures up to the expenditure limit, which is $6 million for tax years beginning after 15 Dec 2024 (it was $3 million). That is up to $2.1 million a year. Per the CRA form notes, qualifying corporations get a 100% refund of the 35% credit on current expenditures up to their limit.
Can an Australian startup get an R&D tax incentive refund?
Yes, if its aggregated turnover is under A$20 million and exempt entities do not control it. The refundable offset is your company tax rate plus 18.5%, so 43.5% for a 25% base rate entity or 48.5% at 30%. You also need at least A$20,000 of notional R&D deductions, and the premium applies up to A$150 million.
Can a US startup get an R&D refund in cash?
Not as a refund. A qualified small business can elect to use up to $500,000 a year of its research credit against the employer share of payroll taxes (Social Security first, then Medicare). It needs gross receipts under $5 million and none in any year before the five-year period ending with the credit year.
Why does the US result use 6% or 14%?
This tool uses the Alternative Simplified Credit: 14% of qualified research expenses above half of your prior three-year average, or 6% if you have no prior-year expenses. The regular credit method can give a different answer. Form 6765 instructions list both methods.
Does the tool include provincial credits or the SR&ED deduction?
No. It estimates only the federal Canadian credit, the Australian offset and the US payroll election. It ignores provincial credits, the effect of the credit on your deductible pool, capital expenditures, the 40% refund on excess credits, taxable-capital phase-outs, and eligibility of your work.
Does eligible work matter more than the math?
Yes. Each regime asks whether your activities count as research. Writing standard software or integrating AI APIs may not. A refund estimate on ineligible spending is zero, so confirm eligibility with the CRA, AusIndustry or a tax adviser first.

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