Dividend vs Salary Calculator

About this calculator

Owners of an incorporated business who want to pay themselves generally have two routes: salary, which is deductible to the company and taxed as personal income (plus payroll-type taxes), or dividends, paid from after-tax corporate profits and taxed again at the personal level, often at a different rate with different credits available. Which route keeps more money in the owner's pocket after both layers of tax depends on the specific tax rates and rules that apply to salary versus dividend income where they're based.

This calculator compares the two routes on an after-tax basis, taking a given amount of owner pay and showing what's left in hand after all applicable taxes under each method. Small-business owners and their accountants use this comparison — often alongside factors like retirement contribution room and payroll obligations — to decide how to structure owner compensation each year.