Salary vs Dividend Calculator (Canada 2025)
Compare three CCPC extraction strategies side by side: all salary, all non-eligible dividends, and the optimal mix (salary to CPP YMPE, balance as dividends). Includes corporate tax under the SBD, CPP, dividend gross-up + DTC, RRSP room, and a per-province integration gap.
Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (allowances used elsewhere, reliefs, marriage allowance, scheme-specific adjustments). Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →
TaxKiln framework
Salary-Dividend Extraction Curve
TaxKiln's optimisation analysis for Ltd Co director remuneration — modelling salary-vs-dividend mix against employer NI + employee NI + corporation tax + dividend tax thresholds per income band for the current tax year.
Your CCPC and income
2025 tax year — owner-manager extraction
All salary Winner | All dividends | Optimal mix | |
|---|---|---|---|
| Corporate income | $150,000 | $150,000 | $150,000 |
| Corporate tax | $0 (deducted) | $18,300 | $9,109 |
| Salary / dividends paid | $145,570 salary | $131,700 dividend | $71,300 sal + $65,557 div |
| CPP (employer + employee) | $8,860 | $0 | $8,068 |
| Personal income tax | $37,134 | $22,454 | $27,762 |
| Net after-tax cash | $99,576 | $109,246 | $101,027 |
| Total tax (corp + personal) | $45,994 | $40,754 | $44,939 |
| RRSP room generated | $26,203 | $0 | $12,834 |
| RRSP value (marginal × room) | $9,737 | $0 | $4,769 |
| Integration gap vs sole prop | −$2,164 | −$7,404 | −$3,219 |
Integration summary — Ontario
Sole-proprietor baseline tax on $150,000 + $0 = $48,158
All salary: results in $2,164 less total tax than earning the same income as a sole proprietor.
All dividends: results in $7,404 less total tax than earning the same income as a sole proprietor.
Optimal mix: results in $3,219 less total tax than earning the same income as a sole proprietor.
RRSP room — the cost of all-dividends
Salary generates RRSP contribution room (18% of salary, up to the 2025 maximum of $32,490). Dividends do NOT generate RRSP room.
At $71,300 salary (CPP YMPE): RRSP room ≈ $12,834. At $180,500+ salary: maximum room of $32,490 is reached.
The optimal mix pays salary up to the CPP maximum, which also secures full CPP pension accrual for the year.