Corporate tax
Salary or dividends: paying yourself from your Alberta corporation
Quick answer
Salary is deductible to the corporation and creates RRSP room and CPP benefits, while dividends offer flexible timing but create no RRSP room. The right mix depends on the owner and the corporation's current financial picture.
Key takeaways
- Salary and dividends have different planning effects.
- Decisions should be made before year end deadlines when possible.
- A CPA can model the mix using current results.
What salary changes
Salary creates employment income, payroll obligations, RRSP room and CPP considerations for the owner.
What dividends change
Dividends can provide flexible timing and do not require payroll, but they do not create RRSP room.
Why a mix can be useful
Many owners use a mix that reflects personal income needs, retained earnings, tax planning and long term goals.
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T2 corporate tax, Calgary
GDPC is a Calgary CPA firm in practice since 2009. Let’s connect this question to the financial work that comes next for your corporation.
Explore the serviceSources & review
Reviewed by Gurjinder Dhillon, CPA, CGA, MBA. Check current primary guidance before acting on filing dates or tax questions: Canada Revenue Agency (opens in new tab) and WCB Alberta (opens in new tab).
Last updated November 16, 2026