Salary vs Dividend Calculator Canada 2026

Free Tax Calculator

Salary vs Dividend Calculator

Find your optimal compensation mix as a Canadian corporation owner. Uses 2025 CRA federal and provincial tax brackets, CPP/CPP2, EI, and non-eligible dividend rates for CCPCs.

This calculator provides estimates for educational purposes based on 2025 CRA rates. Every situation is unique — book a consultation with Brookside CPA for personalised advice.

Compensation

Amount you want to take out Total you want to withdraw from your corporation as salary or dividend

$100K

Personal

Province of residence

Other personal income Rental, employment, investments, etc.

Owner-manager (40%+ voting shares) Exempt from EI premiums under the Employment Insurance Act

Option 1

Salary

$100,000 salary

—

Personal net take-home

Option 2

Dividend

Equivalent dividend

—

Personal net take-home

Full Tax Breakdown

Salary Option

Gross salary—

CPP (employee)—

CPP2 (employee)—

EI premiums—

Federal income tax—

Provincial tax—

Corp CPP match (employer)—

Corp CPP2 match (employer)—

Corp EI (employer 1.4×)—

Total tax & deductions—

Net take-home—

Dividend Option

Corp income needed—

Corp tax (SB rate)—

Dividend paid to you—

Gross-up (15%)—

Federal tax (before credit)—

Federal div. tax credit—

Provincial tax (net of credit)—

Total tax & deductions—

Net take-home—

Click Calculate My Tax to see your personalised comparison.

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Every situation is different. Talk to Brookside CPA for a compensation strategy tailored to your specific corporation and tax position.

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2025 rates: Federal brackets 14.5%–33% (blended; lowest rate reduced from 15% to 14% effective July 1, 2025) · BC brackets 5.06%–20.5% · AB brackets 8%–15% (new 8% bracket on first $60K effective Jan 1, 2025) · ON brackets 5.05%–13.16% · CPP1 5.95% on $3,500–$71,300 · CPP2 4% on $71,300–$81,200 · EI 1.64% to $65,700 (owner-managers with 40%+ shares exempt) · CCPC SB rate: 11% BC, 11% AB, 12.2% ON · Non-eligible dividend gross-up 15%, federal DTC 9.0301% · Basic Personal Amounts applied. For educational purposes only — not tax advice.