Business plan
Dividend optimizer
Eligible dividends, non-eligible dividends, or salary — which route out of your corporation delivers the same after-tax cash for the least combined tax?
Your target
The verdict
Non-eligible dividends delivers your $100,000.00 for $134,842.34 of corporate income consumed — an all-in rate of 25.8%.
Three routes to the same cash
| Route | Corp income used | Corporate layer | Personal layer | All-in rate |
|---|---|---|---|---|
| Non-eligible dividendscheapestProfits taxed at the small-business rate, paid out with the ordinary gross-up and credit. | $134,842.34 | $15,102.34 | $19,740.00 | 25.8% |
| Eligible dividendsProfits taxed at the general rate (GRIP), paid out with the richer gross-up and credit. | $139,498.86 | $36,967.20 | $2,531.66 | 28.3% |
| SalaryDeductible to the corporation, but carries both halves of CPP. Creates RRSP room the dividends don't. | $147,384.18 | $4,646.45 | $42,737.73 | 32.2% |
Total tax by route
Each route is solved to deliver the identical after-tax cash on top of your other income, using 2026 rates. The corporate layer for salary is the employer CPP match; salary also buys RRSP room and CPP benefits the dividend routes don't. Real payouts mix routes — this shows the price of each lane.
Not financial, tax, or investment advice.