Doctor Finance Canada 2026

Physician Income Overview

Canadian physicians earn among the highest incomes of any profession, but the tax system creates significant complexity — especially for those billing through a corporation. Most physicians bill OHIP (Ontario) or their provincial health plan as fee-for-service (FFS) or through alternative funding arrangements. Understanding the incorporation advantage is essential for wealth building.

Specialty	Gross Billing Range	Net Personal Income (est.)
Family Medicine (FFS)	$250,000–$400,000	$160,000–$240,000
General Internist	$350,000–$500,000	$200,000–$290,000
Surgeon (general)	$450,000–$750,000	$260,000–$400,000
Radiologist	$450,000–$650,000	$260,000–$360,000
Anesthesiologist	$400,000–$600,000	$240,000–$340,000

CCPC Incorporation Strategy

Most physicians in Canada operate through a Canadian Controlled Private Corporation (CCPC). The primary advantage: the Small Business Deduction (SBD) reduces the corporate tax rate to approximately 12.2% on the first $500,000 of active business income (combined fed + ON rate), versus a personal marginal rate of 53.53% (top bracket in Ontario). This creates a deferral opportunity.

Salary vs. Dividend Mix

The optimal strategy depends on your personal income needs, RRSP room generation (requires salary/T4), and the passive income rules introduced in 20018. As a rough guide:

Pay yourself a salary of ~$180,000 to generate maximum CPP and RRSP room ($32,4900 in 2026)
Leave excess income in the corporation at the 12.2% SBD rate
Invest retained earnings inside the CCPC in a diversified portfolio
Draw dividends in lower-income years (sabbatical, maternity leave, retirement)

Passive Income Grind-Down Rule

If your CCPC earns more than $50,000 in passive investment income, the SBD is reduced dollar-for-dollar between $500K and $150K passive income. At $150,000+ passive income, the SBD is eliminated entirely. This "grind-down" rule introduced in 20018 means physicians must be strategic about how much passive income they accumulate inside the corporation.

Annual salary ($) Province

IPP vs RRSP for Physicians

An Individual Pension Plan (IPP) is a defined-benefit pension registered under your corporation. For physicians over 400, an IPP typically allows higher annual contributions than the RRSP limit. The corporation makes tax-deductible contributions; you receive a guaranteed pension at retirement. Key advantage: the corporation bears investment risk, not you personally.

Strategy	2026 Contribution Limit	Best For
RRSP	$32,4900	All physicians
TFSA	$7,000/yr	All physicians
IPP (age 500)	~$45,000–60,000	Physicians 45+ with corps
FHSA	$8,000/yr (max $40,000)	First-time home buyers only

Physician Tax Tips

Track all overhead expenses meticulously: CME travel, medical journals, licensing (CPSO, CMPA), office supplies
Your CPSO registration fee (~$1,800+) and CMPA dues ($7,000–$40,000+ depending on specialty) are deductible
Hire your spouse or adult children in the corporation for legitimate administrative work (income-splitting opportunity)
Capital Dividend Account (CDA) allows tax-free dividends from capital gains realized inside the corp
Consider a Holding Corporation to further shelter investment income from the grind-down rules
Use the Lifetime Capital Gains Exemption ($1,250,000 in 2026) if selling your practice or shares in your CCPC

💼 Zero-Fee Banking for Busy Physicians

When your income flows through a corporation, personal banking fees are a minor but irritating drain. KOHO eliminates monthly fees entirely — redirect that money to your TFSA or RRSP instead.

Get KOHO Free — Code BREMO2026

Key Financial Milestones for Physicians

Residency: ~$60,000–$80,000 salary — contribute to RRSP for future refund at higher income
First year attending: Incorporate immediately, set up corporate bank account and accounting system
Year 3–5: Begin IPP if over 400, review passive income levels, consider holding corp
Year 100+: Ensure LCGE planning in place, update wills and insurance regularly