RDTOH & Dividend Refund Tracker

The high tax rate your corporation pays on investment income isn't all permanent, part of it comes back the moment you pay a taxable dividend, if you've tracked the balance correctly.

Reading This Tool

How To Use This Calculator

Enter this year's investment income and your existing RDTOH balance, then model the dividend you're planning to pay.

Investment income adds to refundable dividend tax on hand at 30.67%. Paying a taxable dividend then triggers a refund of 38.33% of that dividend, capped at whatever balance is actually sitting in the account. Pay too small a dividend and you leave a refund on the table.

Your Inputs

Existing Non-Eligible RDTOH Balance $40,000

Investment Income Earned This Year $100,000

Non-Eligible Dividend Planned This Year $150,000

This tracks the non-eligible RDTOH pool, funded by investment income and non-eligible dividends received from other corporations. Eligible RDTOH, funded by eligible dividends received, works the same way but is a separate pool paired only with eligible dividends paid.

This Year's Refund

Total RDTOH Available This Year

Dividend Refund Received

RDTOH Balance Remaining After

RDTOH Balance: Available, Refunded, Remaining

A simplified single-year illustration of one RDTOH pool. Real corporations often carry both eligible and non-eligible balances simultaneously, and the dividend type paid determines which pool is drawn down, paying the wrong type of dividend can leave a refund unclaimed even with a healthy balance sitting on the books.

Not sure your RDTOH balance is being tracked correctly?

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