Should I take Salary or a Dividend?


Using 2013 Tax Rates

TAXABLE INCOME PERSONAL* CORPORATE DEFERRAL INDIV. TAX* COMBINED BENEFIT (COST)
Under $500,000

43.70%

13.50%

30.20%

29.16%

42.66%

1.04%
Over $500,000

43.70%

28.50%

15.20%

19.34%

47.84%

-4.13%
Investment Income

43.70%

45.17%

-1.47%

-1.33%

43.84%

-0.14%
Dividend Income

33.71%

33.33%

0.38%

0.38%

33.71%

0.00%

* Assumes individual shareholder in top marginal tax bracket.