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How should you pay yourself?

Compare salary and dividends. Include the money you need to live on, your savings, Canada Pension Plan (CPP) benefits and any payments to family.

For Canadian incorporated owners. These planning questions do not calculate a tax difference; the separate BC calculator states its own assumptions.

Before you use this check

Do salary and dividends create the same RRSP room?

No. Salary can create room for a later year within the RRSP rules; dividends do not. Check whether new room can be used, including age limits, pension adjustments, and any spousal plan. Read CRA's RRSP guide.

Can I pay family dividends just because their tax bracket is lower?

A lower tax bracket is not enough. The tax on split income rules can tax family dividends at the highest rate unless an exception applies. Check ownership, work history and the proposed payment before counting on a saving. Read CRA's adult TOSI guidance.

See the decision in context

Follow your pay choice through retirement.

See how owner pay connects to saving, later withdrawals and pension questions.

Explore the example