Sept 22, 2025
If you run a small business in BC, one of the first questions you will face is simple:
“How should I pay myself from my corporation?”
Most owners use a mix of salary and dividends, and if you are paying non-eligible dividends from your Canadian Controlled Private Corporation (CCPC), it helps to know how much you can take out without triggering personal tax. Let’s walk through the numbers for a BC resident in 2025.
The Quick Answer
For 2025 in BC, if you do not have any other income, you can take about $30,200 in non-eligible dividends and pay no personal tax.
That is your sweet spot. Once you cross it, the tax meter starts running.
What Happens After $30K?
The tax does not hit hard right away. It starts small and builds up as you move into higher brackets. Think of it like climbing a hill: gentle at first, then steeper as you go.
Here are a few checkpoints along the way:
| Dividend Amount | Tax Payable | Effective Rate |
|---|---|---|
| ~$30,200 | $0 | 0% |
| ~$57,500 | ~$2,900 | ~5% |
| ~$90,000 | ~$8,900 | ~10% |
| ~$130,000 | ~$19,400 | ~15% |
| ~$150,000 | ~$26,100 | ~17% |
So yes, you can take more than $30K. But once you pass those milestones, you are sharing more of it with the CRA.
Dividends vs. Salary in BC
Dividends are not the only way to pay yourself. Salary has perks too, such as creating RRSP room. Most small business owners in BC use a mix of dividends and salary. The key is finding the balance that leaves the most money in your pocket after tax.
Why This Matters
- Staying under ~$30K may keep things 100% personal tax-free.
- Taking more is fine, but knowing where the thresholds are will keep things stress-free at tax time.
- Thinking about dividends vs salary? Planning ahead can save you thousands.
How Deximal Helps
We keep it simple. No jargon, no shoebox accounting, no scary surprises. Just clear numbers, good planning, and smart tools so you always know where you stand.
At Deximal, we help you:
- Decide how much dividend you can take out tax-free.
- Find your best dividend vs salary mix.
- Plan ahead so your cash flow is steady.
Bottom Line
In BC, in 2025, you can pull out about $30,200 in non-eligible dividends tax-free if you have no other income. Past that, the tax grows slowly at first, then faster. With a bit of planning, you can avoid surprises.
👉 Want to know more?
Let’s chat. We can help you plan ahead for your business taxes and make the call that is right for you.