Salary vs Dividends Calculator

The Salary vs Dividends Calculator is an essential tool for Canadian Controlled Private Corporation (CCPC) owners deciding how to compensate themselves tax-efficiently. Small business owners face a critical decision each year: should you pay yourself salary (creating RRSP room and CPP contributions) or dividends (which are taxed at lower rates after corporate tax integration)? This calculator models both compensation strategies, showing the total tax burden including corporate income tax, personal income tax, CPP contributions, and provincial variations. It accounts for the dividend tax credit system, RDTOH (Refundable Dividend Tax On Hand), GRIP (General Rate Income Pool), and the small business deduction limit. The optimal strategy depends on your income needs, RRSP contribution room, CPP coverage goals, and provincial tax rates. For many CCPC owners, a mixed strategy combining salary and dividends delivers the best after-tax result while maximizing retirement savings and government benefit eligibility.