Savings calculator
What would a PHSP save you?
The idea is simple: when you pay a medical bill personally, you first have to earn that money and pay income tax on it. When your corporation pays the same bill through a PHSP, that tax never happens, and the corporation deducts what it pays as a business expense. The savings are the tax skipped on both sides, minus our 10% fee.
Three quick questions and you'll see your number.
Dental, glasses, prescriptions, orthodontics, physiotherapy, and more, for your whole family.
$3,000
2. How much tax do you pay on your last dollar earned?
Your “marginal rate”: combined federal + provincial, approximate; it varies a little by province. Just pick the income closest to what you pay yourself, or use the slider.
3. What income tax rate does your corporation pay?
Combined federal + provincial. Most owner-managed corporations pay the small business rate on active income, roughly 9–12%, depending on province.
Your estimated tax savings
$2,235
kept between you and your corporation, every year you claim, after our fee.
Where those savings come from
Today, without a plan
You pay personally
To put $3,000 in your pocket for the bills, your corporation pays you $5,172, because at your 42% rate, $2,172 goes to income tax first.
$5,172 total
With a Medallion PHSP
Your corporation pays directly
The same $3,000 of bills is paid by your corporation, plus our 10% fee ($300) and GST on the fee. You're reimbursed the full $3,000: no income tax, because it isn't income. A PHSP reimbursement is designed to be a tax-free benefit under CRA's rules.
$3,315 total (bills + $315 fee & GST)
And the corporation's books
The whole thing is a deductible business expense
The $3,000 of bills plus our $300 fee is fully deductible against your corporation's income, and the GST on the fee usually comes back as an input tax credit. At your 11% corporate rate, delivering $3,000 of health care ends up costing the corporation just $2,937 after tax, money that was never taxed in your hands either.
| Corporation pays out (bills + fee + GST) | $3,315 |
| Income tax saved on the $3,300 deduction (11%) | −$363 |
| GST recovered as an input tax credit | −$15 |
| Net after-tax cost to the corporation | $2,937 |
The GST credit assumes your corporation is a GST registrant with commercial activity. Many medical professional corporations make GST-exempt supplies and can't claim input tax credits. Your accountant will know.
This is a simplified illustration, not tax advice. It compares the pre-tax personal income needed to fund an expense at your marginal rate with the cost of funding it through a PHSP, and adds the corporation's deduction and GST input tax credit. Combining both sides assumes paying personally wouldn't otherwise create a corporate deduction (typical for owners paid by dividends). Your situation (dividends vs. salary, province, other credits, GST registration) will affect the exact numbers. We're happy to walk through your specifics in a free consultation.