Canada Corp Dividend vs Salary Calculator
Compare Canadian incorporated consultant dividend draws versus T4 salary under CRA small business deduction with CPP optimization.
1How to Use Canada Corp Dividend vs Salary Calculator
Canadian incorporated professionals and consultants can extract corporate profits as T4 employment salary or non-eligible dividends, balancing CPP costs against personal tax integration.
- Step 1.Enter your annual corporate consulting revenues in Canadian Dollars (C$).
- Step 2.Enter annual deductible business operating expenses.
- Step 3.Enter your desired personal annual cash draw amount.
- Step 4.Compare total corporate and personal tax liabilities under both paths.
2Formulas, Methodology & Key Features
Canadian Corporate Tax Integration Formula
Dividends are paid from after-tax corporate profit (taxed at ~12.2% SBD) and receive a dividend tax credit. Salaries reduce corporate profit but incur personal tax and CPP:
3Canada Corp Dividend vs Salary Comparison Matrix (C$)
| Revenue (C$) | Personal Draw | Total Tax (Dividend) | Total Tax (Salary) | Annual Advantage |
|---|---|---|---|---|
| C$100,000 | C$60,000 | C$23,500 | C$21,200 | C$2,300 (Salary Win) |
| C$150,000 | C$80,000 | C$34,100 | C$30,800 | C$3,300 (Salary Win) |
| C$220,000 | C$110,000 | C$48,700 | C$47,900 | C$800 (Salary Win) |
| C$300,000 | C$150,000 | C$67,800 | C$71,200 | C$3,400 (Dividend Win) |
?Frequently Asked Questions (FAQ)
Common questions answered about Canada Corp Dividend vs Salary Calculator.
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