Resources / PREC Calculator
PREC CalculatorSee how much tax a PREC saves you this year, and what that money can do. For real estate agents. Free.
2026 tax rates for Ontario, Alberta and BC
Most agents are told there is an income level where you should incorporate. There is not one. The answer depends on how much of your profit you do not need to live on.
The calculator
See what a PREC saves you
Answer one short screen at a time, then read your result.
- You
- Province
- Profit
- Your pay
- Results
Where are you now?
PREC means personal real estate corporation.
Which province do you work in?
Tax rates are different in each one.
What is your profit before tax for the next 12 months?
Your commissions after brokerage fees and business costs.
Include all your commissions, less brokerage fees and business costs. Do not take off tax. Do not take off anything you pay yourself. Not sure? The Profit Calculator works it out.
How much would your PREC pay you each year?
This is the salary you take out to live on. The rest stays in the PREC.
The yearly salary before tax. Do not include money you plan to leave in the PREC.
Your personal living costs for a year. Leave out business costs, they are already in your profit. The Living Cost Worksheet on our Resources page works this out.
Tax saved this year
$0
Before tax on money you later take out.
Where your profit goes
Only the green part can stay in your PREC. The bigger it is, the more a PREC saves you.
If you invest it
After 10 years. 6% is an example rate, before tax on investment income.
If you buy property with it
Property held in a corporation is financed and taxed differently from property you own personally. We can go over it in an intro meeting.
Want a CPA to look at your real numbers?
Book an intro meeting with Hashim Awad, CPA, to go over your numbers and how to set up your pay.
Book an intro meetingWhere the money goes
Ten years, year by year
What you entered
Rates used and what this leaves out
A simplified estimate using published 2026 rates (2027 corporate rate for Ontario), not tax advice. Tax saved counts CPP as a cost. When your salary is under $85,000, part of the saving is CPP you no longer pay, which also means a smaller CPP pension.
Nothing you enter is stored.
How to use it
Four steps to your answer
Say where you are
Pick “No PREC yet” or “I have a PREC”, then your province.
Enter your profit
Your profit before tax for the next 12 months, after brokerage fees and business costs.
Set your pay
Tell it the salary you take out to live on.
I know my salaryEnter the yearly salary, before tax.
Show meEnter what you need after tax. It works out the salary.
Read your answer
It shows the tax saved this year, what stays in the PREC, and what that money can grow into.
Step 3 in detail
I know my salaryEnter the yearly salary, before tax.
Show meEnter what you need after tax. It works out the salary.
The one thing that matters
Only what you do not spend can stay in a PREC
Money you take out to live on is taxed the same way with or without a PREC. The difference is the rest.
The bigger the gap between what you earn and what you take out, the more a PREC saves you.
Money left in a PREC is taxed at a low corporate rate now and taxed again when you take it out. Until then, more of it is working for you.
What changes the answer
A bigger gap = more tax saved
Take out everything you earn, and a PREC saves no tax.
Is it free?
Yes. No sign-up.
Is there an income level where a PREC makes sense?
No. It depends on how much you leave in the PREC. Two agents with the same income can get different answers.
Is the tax saved gone for good?
No. Money left in a PREC is taxed again when you take it out. A PREC lets more of it work for you in the meantime.
Does it cover dividends?
No. It assumes the PREC pays you a salary. The right mix of salary and dividends depends on your situation.
Which tax rates does it use?
Published 2026 federal and provincial rates for Ontario, Alberta and British Columbia. We update them each January.
Is my information saved?
No. Nothing you enter is stored.
Want a CPA to look at your real numbers?
Book an intro meeting with Hashim Awad, CPA, to go over your numbers and how to set up your pay.
See how we help agents and PRECs, or see all free tools.
General guide only. It is not tax advice for your situation.