Canadian PREC Tax Savings Estimator
Estimate the potential tax deferral benefits of incorporating as a Personal Real Estate Corporation (PREC) in Canada. By leaving surplus earnings in the corporation, you are taxed at the lower Small Business rate rather than your higher personal marginal tax rate.
Your PREC Advantage
Net Business Income:
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Retained in Corporation:
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Scenario A: Sole Proprietor
Personal Income Tax (Est.):
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Scenario B: Incorporated (PREC)
Corporate Tax on Retained (SBD rate):
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Personal Tax on Salary (Est.):
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Total Tax Paid:
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Annual Tax Deferral Savings:
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This is the extra capital you keep inside the corporation to reinvest or save for retirement. Note: Estimates are based on simplified 2026 tax brackets; actual taxes depend on personal circumstances.
