Salary or dividend calculator

Compare owner cash from salary or a dividend using rates you type. Not a provincial tax table.

Amount set aside (required), CAD

CAD

Cash the company uses for this comparison, in Canadian dollars. Not a province figure.

Corporate tax rate you type (required)

Applied only on the dividend path. You type it. This is not a provincial rate.

Personal tax rate on salary you type (required)

A percent of the salary. You type it. This is not a provincial bracket.

Employee deductions rate you type (required)

A percent of the salary for deductions you want included. You type it.

Employer payroll rate you type (required)

A percent of the salary, taken from the amount set aside. You type it.

Dividend gross-up you type (required)

Percent added to the dividend before tax. You type it. This page does not fill a CRA gross-up.

Tax rate on the grossed-up dividend you type (required)

A percent of the grossed-up dividend. You type it. Not a provincial bracket.

Dividend tax credit rate you type (required)

A percent of the grossed-up dividend. You type it. Not a federal or provincial credit from a table.

Result

Salary or dividend calculator

Higher cash

—

Enter the amount and every rate to compare salary cash and dividend cash.

Ballpark estimate, check before you buy or quote.

Estimate for planning only. This is not tax, legal, accounting or financial advice. Results depend on the figures you enter. Check all numbers, rates and rules with the official source or a qualified professional before relying on them.

How this works and common questions

About this tool

Every rate on this page is one you type. It is not a provincial tax comparison and it does not look up a gross-up, a credit, or a bracket. A simple estimate, not advice.

How it works

On 10,000.00 with rates you type of 12% corporate, 25% salary tax, 7% employee, 5% employer, 38% gross-up, 20% dividend tax, and 15% credit: salary cash is 6,476.19 and dividend cash is 8,192.80. The dividend is higher by 1,716.61. These rates are the example, not a provincial table.

Rules

This is not a province-by-province comparison. You type every rate. Salary is the amount set aside divided by 1 plus the employer rate, half up to the cent. Employer cost is the rest of that amount. Employee deductions and salary tax are each the salary times the rate, half up to the cent. Corporate tax is the amount times the corporate rate, half up to the cent, and the dividend is what remains. The grossed-up dividend is the dividend times 1 plus the gross-up, half up to the cent. Dividend tax and the credit are each that grossed-up amount times the rate, half up to the cent. Tax minus credit is the dividend tax, and it is not below zero. A simple estimate, not advice.

Questions

Are these provincial tax rates?

No. You type every rate. This page is not a provincial tax comparison and it does not use a gross-up or a credit from a table.

How is the example 8,192.80 and 6,476.19 worked out?

On 10,000.00, a 12% corporate tax leaves a dividend of 8,800.00. A 38% gross-up makes 12,144.00. Tax at 20% is 2,428.80 and a 15% credit is 1,821.60, so dividend tax is 607.20 and dividend cash is 8,192.80. A 5% employer rate makes salary 9,523.81. Deductions at 7% are 666.67 and tax at 25% is 2,380.95, so salary cash is 6,476.19. Each step is half up to the cent.

What if the credit is larger than the tax?

Dividend tax is shown as zero. That is not a refund. A simple estimate, not advice.

Do I need an account?

No. The tools work without one. You only need to sign in to save your work.

Is what I type saved?

No. Nothing is saved unless you sign in and choose Save. Otherwise it stays on the page.

Do you show ads or sell my information?

No. We show no ads and we do not sell your information.

Is this tax or legal advice?

No. Results are estimates for planning. Check rates and rules with the official source or a qualified professional.

Cookies and privacy