If you own a Canadian-controlled private corporation (CCPC), one of your most important tax decisions is how to extract money - as salary, dividends, or a combination. Salary gives you RRSP contribution room and is a business expense that reduces corporate tax. Dividends are paid from after-tax corporate profits and receive a dividend tax credit at the personal level. Neither is always better; the right mix depends on your province, personal income needs, RRSP room, and the corporate tax rate applicable to your business. This calculator lets you enter your desired after-tax personal income, your province, and your corporate income to compare the total tax cost of each approach. It models active business income taxed at the small business rate versus salary and eligible dividend scenarios.