GRIP & Eligible Dividend Designation Calculator

Income taxed at the general corporate rate builds a pool that lets a corporation pay dividends at the better personal tax rate. Designate more than the pool actually holds, and a real penalty tax follows.

Reading This Tool

How To Use This Calculator

Enter the opening General Rate Income Pool balance, active business income taxed above the small business limit, and eligible dividends received or planned.

The pool grows by 72% of income taxed at the general corporate rate, plus any eligible dividends received from other corporations. A dividend can only be designated eligible up to the available balance, going over triggers a separate penalty tax on the excess.

Your Inputs

Opening GRIP Balance $100,000

Active Business Income Taxed At The General Rate $200,000

Eligible Dividends Received From Other Corporations $20,000

Eligible Dividend Planned To Be Paid This Year $250,000

The 72% addition rate reflects the portion of general-rate income roughly equivalent to what remains after combined federal and provincial corporate tax, fixed in the Income Tax Act rather than tied to any specific province's actual rate.

Designation Result

Available GRIP Balance

Maximum Eligible Designation

Excess Over Available GRIP

Part III.1 Penalty Tax On Excess (20%)

Available GRIP vs. Proposed Dividend

A late or excess eligible dividend designation can sometimes be corrected via an election, subject to conditions and CRA discretion, rather than automatically triggering the full penalty. This models the default outcome without such relief.

Want the refundable tax pool side of this tracked too?

See The RDTOH Tracker →