Should I take dividends or salary?

Taxable Income

Personal*

Corporate

Deferral

Individual Dividend Tax*

Combined

Benefit (Cost)

Under $500,000

49.80%

12.00%

37.80%

38.48%

50.48%

-0.68%

Over $500,000

49.80%

27.00%

22.80%

24.97%

51.97%

-2.17%

Investment Income

49.80%

50.67%

-0.87%

4.31%

54.98%

-5.18%

Dividend Income

34.20%

33.33%

0.87%

0.87%

34.20%

0.00%

* Assumes individual shareholder in top marginal tax bracket
** Based on 2018 rates


The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

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