2026 estimate
Salary vs. leave it in the company
Rough small-business rate (12.2%) against personal tax if you stayed a sole prop. Not a filed return.
Personal tax if you stay a sole prop
$54,906.52
Personal tax on the salary
$15,287.25
Corporate tax on $100,000.00 left in
$12,200.00
Left in the company after tax
$87,800.00
Corporate tax uses a combined small-business rate of 12.2% (federal 9% plus Ontario 3.2%) and ignores the general rate, taxable capital, and the passive-income grind. Personal tax is the basic Ontario estimate. Dividends are not modelled — salary is. The difference is a sketch for a conversation, not a reorganization memo.