Calculators · IPP vs RRSP
IPP vs RRSP: the corporate owner comparison
Select your province to load the correct corporate and personal tax rates, then adjust the sliders to model your scenario.
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Wealth accumulation over time
IPP contribution, compounded
RRSP contribution, compounded
Combined corporate + personal annual tax advantage of IPP over RRSP:
$18,144 / year
Corporation · pre-tax
$700,000
$180,000
$160,000
Personal & contributions
47
$35,000
$29,780
Growth assumptions
6%
20 yrs
Corporation · income statement
Pre-tax
Revenue$700,000
Operating expenses-$180,000
Owner salary (deductible)-$160,000
IPP contribution (deductible)-$35,000
Effective corporate tax rate11% (SBD rate)
Taxable income$325,000
Corporate tax-$35,750
Net retained earnings$289,250
Personal · tax return
Post-salary
Salary income$160,000
Personal tax (before RRSP deduction)-$58,320
RRSP deduction refund+$14,294
Net tax paid (RRSP scenario)$44,026
After-tax spendable (RRSP)$85,974
After-tax spendable (IPP)$101,680
Marginal rate on salary48%
IPP · dollars invested
$35,000
RRSP · net cost to owner
$15,486
Corp. tax saved by IPP deduction
$3,850
Personal tax avoided (IPP route)
$14,294
Total annual tax advantage
$18,144
Max IPP room (est., age-based)
$42,300
Money flow: where do the dollars actually go?
Scenario A · RRSP route: salary → personal tax → RRSP
Corporate profit
$360,000
Salary paid out
$160,000
Personal tax (net)
-$44,026
Into RRSP
$29,780
Spendable + RRSP invested
$115,754
Scenario B · IPP route: contribution stays in corporation
Corporate profit
$360,000
IPP contribution (pre-tax)
$35,000
Salary paid out
$160,000
Personal tax (no RRSP)
-$58,320
IPP invested + spendable
$136,680
Illustration only, not tax advice. Federal & provincial personal rates and corporate SBD / general rates are 2025 figures; surtaxes, the Quebec abatement, and AMT are not modelled. IPP room shown is an age-based estimate, not an actuarial valuation. Always confirm current figures with a qualified tax advisor.