Taxes for Dentists in Canada (2026)
Dentists are among Canada's top earners. Most incorporate their practice through a Dental Professional Corporation. Effective tax planning — including salary/dividend mix and RRSP — can substantially reduce your overall tax burden.
Quick Tax Snapshot
Based on a typical dentists salary of $200,000 in Ontario (2026).
Gross Salary $200,000
Federal Income Tax -$40,067
Ontario Tax & Health Premium -$24,655
CPP Contributions -$4,646
EI Premiums -$1,123
Estimated Take-Home (Annual) $129,509
Effective tax rate: 35.2% • Marginal federal rate: 29.0% • Marginal Ontario tax & levy rate: 19.0%
Gross Salary
$200,000
Typical median (CAD)
Take-Home Pay
$129,509
After all deductions (ON)
Effective Rate
35.2%
Combined tax rate
Monthly Take-Home
$10,792
Approximate monthly
Key Tax Deductions for Dentists
- ✓ Provincial dental regulatory authority fees
- ✓ CDA (Canadian Dental Association) and provincial dental association dues
- ✓ Professional liability insurance
- ✓ Dental-specific CE courses and conferences
- ✓ Business expenses through Dental Professional Corporation
- ✓ RRSP contributions or IPP for incorporated dentists
Frequently asked questions
Should a dentist incorporate?
Most provinces allow dentists to incorporate through a Dental Professional Corporation (DPC) or similar structure. Incorporation allows income deferral at the small business tax rate (~9-12%) on retained earnings, potential income splitting, and lifetime capital gains exemption planning.
What is the optimal salary vs. dividend split for a dentist?
There is no single answer — the optimal mix depends on your province, RRSP room, other income sources, and provincial tax rates on eligible vs. ineligible dividends. Generally, a salary up to the RRSP contribution limit is paid, with remaining income taken as dividends. A tax accountant should model this annually.
Are CDA dues deductible?
Yes. CDA and provincial dental association dues are deductible as professional membership dues on line 21200 of your T1 return or as a corporate expense if incorporated.
How much tax does an unincorporated dentist pay on $200,000 in Ontario?
In 2025, an unincorporated dentist earning $200,000 in Ontario faces a combined federal + provincial marginal rate of about 48% at that income level (29% federal plus Ontario's surtax-inflated provincial rate), rising to the province's top combined rate of approximately 53.53% only on income above $253,414. After federal and provincial tax, CPP, and EI, net take-home on a $200,000 salary is roughly $129,000.
Calculate Your Actual Tax
The snapshot above uses a typical salary. Use our Income Tax Calculator to enter your exact income, province, and tax year for a personalized breakdown.
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