Incorporation tax savings calculator
| Profit left in the corporation | $0 |
|---|---|
| Personal tax on that profit if not incorporated | $0 |
| Corporate tax on that profit | $0 |
| Estimated tax deferred this year | $0 |
Change the numbers to see your estimate.
How this estimate works
If you are not incorporated, all business profit is taxed personally in the year it is earned. In a corporation, you pay yourself what you need as salary, and the profit left in the company is taxed at the small business rate: 11.2% in Ontario for 2027, and a blended 11.7% for a 2026 calendar year-end. The difference is tax you defer until you take that money out.
The calculator uses 2026 combined federal and Ontario personal tax rates for a single person with only the basic personal credits. It leaves out CPP, the Ontario Health Premium, other income and credits, and the yearly cost of running a corporation, so treat it as a starting point, not advice.
Read Should you incorporate your business in Ontario? or see our incorporation services.
Common questions
Is deferred tax the same as saved tax?
Not exactly. Most of it is paid later, when you take the money out as dividends. The benefit is having more money working in the business in the meantime, plus flexibility over when you pay personal tax.
What does it cost to run a corporation?
Mainly year-end financial statements and a corporate tax return each year, plus payroll or dividend slips. Our packages start from $349 a month plus HST and include the year-end statements, corporate tax return and dividend slips; payroll for your own salary is included from Growing Business up, and payroll for employees is an add-on.
Does this apply to doctors and dentists?
Yes, through a professional corporation, with some extra rules from your college. See our page for doctors and dentists.
Monthly tax tips by email
One short email a month with deadlines and changes that affect Toronto business owners.