P&P Accounting

Salary-Dividend Optimization

If you have a corporation (Canadian Controlled Private Corporation) you might ask yourself how to take money out of the business while paying as little tax as possible. In essence, there could be just two options: either by paying yourself a salary or a dividend. This calculator helps to answer this question.

Select province:

Select tax year:

Net corporate income before taxes:

CPP exempt (most common):

EI exempt (most common):

Full analysis

IMPORTANT:

Net corporate income before taxes = Total income corporation earned minus all applicable expenses except for salaries and wages to the owner
It is assumed that all net income before taxes is fully distributed to the owner as a salary; nothing is left in the corporation
It is assumed that there is just one owner who wants to withdraw the money from the corporation

This calculation is just a high level estimate and does not take into account all possible variables and it might not be applicable to all cases. Actual tax calculation might be different. Use it on your own risk.

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Salary-Dividend Optimization