How the calculator decides
A corporation only saves tax on money you leave inside it. Profit kept in a professional corporation is taxed at the small business rate, about 9 to 12% depending on the province. The same dollars taken personally are often taxed at 43 to 53% for dentists.
The calculator works out how much you could leave inside each year after your take-home and debt payments, estimates the tax deferred on that amount, and compares it with the yearly cost of running a corporation. If the deferral doesn't beat the running cost, incorporating is too early.
Why year one is often too early
New dentists usually need most of their income personally: paying down a professional line of credit, setting up a home, starting a family. Money you take out of a corporation is taxed about the same as if you'd earned it personally, so a corporation adds accounting costs without much saving. Once your debt payments drop or your income rises, the math can flip quickly.
What it doesn't include
This is a simplified estimate. It doesn't model salary versus dividends, RRSP room, CPP, payroll costs, rules on passive investment income inside a corporation, or provincial regulator requirements for professional corporations. Quebec's small business rate also depends on an hours-worked test. Speak with an accountant before you incorporate.
Common questions
How much does a dental corporation cost to run each year?
A corporation files its own tax return and year-end statements every year, so most of the cost is accounting fees, plus small government filing fees. The calculator assumes $4,000 a year. Your accountant can give you a real quote.
Is the tax saving permanent?
No. It's a deferral. Money left in the corporation is taxed again when you take it out later, ideally in lower-income years such as a parental leave or retirement.
Can associates incorporate?
Often, yes, if you work as an independent contractor rather than an employee. Rules vary by province and by your dental regulator, so check before you set one up.
Which provinces does it cover?
All 10 provinces, using 2026 combined federal and provincial personal tax rates and 2026 small business corporate rates.
Is this tax advice?
No. It's general information and an estimate based on simplified assumptions. A free 15-minute corporate structure review can look at your actual numbers.