Incorporation tax & cash-flow estimator
Compare a straightforward Ontario self-employed scenario with a salary-only corporation scenario—and see the difference between current-year deferral and permanent tax savings.
Model assumptions and limits
This educational estimate uses 2026 federal and Ontario tax brackets, basic personal credits, Ontario surtax and health premium, and 2026 CPP thresholds. The corporation is assumed to be an Ontario CCPC earning active business income eligible for the 9% federal small-business rate and Ontario’s 3.2% lower rate. The self-employed comparison assumes the same net business income, with no additional deductions or credits.
Dividends, RRSP deductions, EI, GST/HST, capital-cost allowance, spouse or family income, RRSP room, instalments, other deductions, associated corporations, investment income, PSB exposure, and income over the small-business limit are intentionally outside this model. A positive current-year difference is normally tax deferral—not a promise of permanent tax savings.
Rates: CRA 2026 personal rates, corporate rates, and CPP rates.