Home / Financial Tools / Salary vs. Dividend
Corporate & Personal Tax · T2 / T1
Salary vs. Dividend Tax Optimizer
See exactly how much total tax, corporate and personal combined, disappears under a 100% salary strategy versus a blended salary/dividend split, for your province.
Reading This Tool
How To Use This Calculator
Start with your corporation's net income and the personal draw you actually need this year.
Drag the Optimized Dividend Mix slider to see how shifting part of that draw from salary to dividends changes the total tax bill. The bar chart compares a 100% salary approach against the blended split side by side, and the sidebar flags the two situations that change the math the most, passive investment income above $50,000, and a dividend mix small enough that its tax credit goes to waste.
Your Inputs
Optimized Split Result
-Net Personal Income Left Over
$0
After personal tax & CPP on the salary portion
Corporate Tax Leakage
$0
Tax paid inside the corporation
Total System Tax (Optimized)
$0
Corp + personal + CPP, combined
Total System Tax (100% Salary)
$0
Same draw, no dividend mix
Total Tax Drag, 100% Salary vs. Optimized Split
This tool models combined federal + provincial rates using simplified, rounded 2024/2025-approximate figures. It ignores personal credits beyond dividend tax credits, RRSP room, and province-specific surtaxes. It's built to show the shape of the salary-vs-dividend decision, not to replace a real integration calculation from a tax professional.
Want the exact split for your actual numbers?
We run this properly, RRSP room, passive income grind-down, prior-year carryforwards and all, as part of every T1 + T2 engagement.