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 Provincial Tax -$17,788
CPP Contributions -$4,646
EI Premiums -$1,123
Estimated Take-Home (Annual) $136,376
Effective tax rate: 31.8% • Marginal federal rate: 29.0% • Marginal Ontario rate: 12.2%
Gross Salary
$200,000
Typical median (CAD)
Take-Home Pay
$136,376
After all deductions (ON)
Effective Rate
31.8%
Combined tax rate
Monthly Take-Home
$11,365
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 would face a combined federal + provincial marginal rate of approximately 53.53% on income above $246,752, and 43.41% between $100,392 and $150,000. After CPP contributions and other deductions, net take-home would be roughly $114,000–$120,000.
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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