Paying yourself
How much should I take out of my corporation?
You need money to live on. Your business needs money to run. The right pay plan connects both with what you want to build for later.
The amount comes before the method.
“Salary or dividends?” is often the first question. Start one step earlier: how much after-tax money do you actually need personally, and when?
Regular spending, a home purchase, debt repayment and personal investing can call for different amounts at different times. Then compare how salary, dividends or a combination could fund those needs.
A corporate balance is not all available to spend.
Money for tax, payroll, business costs and a business reserve already has a job. Separate those commitments from the surplus before deciding what to take personally.
Leaving every spare dollar in the corporation is not automatically the best plan either. Personal RRSP and TFSA contribution limits, future withdrawals and the eventual transfer to family belong in the same comparison.
Compare the years, not just the paycheque.
A steady annual amount may work differently from a large withdrawal in one year. The useful comparison keeps your spending needs consistent and looks at the tax paid by both you and your corporation, savings and flexibility over time.
Already paid money into the corporation yourself? Have the shareholder-loan balance reviewed too. Repaying a genuine amount the corporation owes you is a different question from salary or dividends.
Sources and limits of this example
General Canadian planning information, reviewed September 30, 2026. This page explains the decisions to compare; it does not calculate a personal result or recommend a withdrawal amount.
What would this mean for you?
We can compare the choices as part of your lifetime tax plan.
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