Dividend tax credit calculator
Choose your province, enter your other taxable income and your eligible and non-eligible dividends. You get the gross-up, both credits and the tax the dividends add.
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Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-23. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
How are Canadian dividends taxed?
Eligible dividends are grossed up by 38% and other-than-eligible dividends by 15%. You pay tax on the grossed-up amount, then a federal credit of 15.0198% (eligible) or 9.0301% (other than eligible) of that amount and a provincial credit reduce the tax. An Ontario resident with $60,000 of other income and $20,000 of eligible dividends pays $1,278 on the dividends, 6.4% of what was received.
Why we built this calculator
Dividends are not taxed like salary. The corporation has already paid tax on the profit, so the system grosses the dividend up to approximate the pre-tax income, taxes that, and then gives you a credit. Which gross-up and which credit applies depends on whether the dividend is eligible or not, which your T5 slip shows.
This calculator does the gross-up and both credits for your province, and compares the result with the same amount of ordinary income so you can see the benefit. To see your rate on the next dollar, use the marginal tax rate calculator, and for a sale of shares, the capital gains tax calculator.
It runs in your browser. Nothing you enter is sent anywhere, and there is no sign-up.
When to use it
- Estimating the tax on dividends from a portfolio
- Comparing eligible and non-eligible dividends
- Seeing how much better dividends are taxed than interest at your income
- Planning the tax on dividends you pay yourself from your own corporation
Mistakes it helps you avoid
- Applying the credit to the cash dividend instead of the grossed-up amount.
- Mixing up eligible and non-eligible dividends. The gross-up and credits differ.
- Using one province's rates for another. The provincial credit varies from 1.3% to 14% of the grossed-up amount.
- Forgetting that the dividends push your other income into a higher bracket.
How the tax on dividends is worked out
Gross up, add to your income, tax it, then subtract the credits.
taxable amount = eligible dividends × 1.38 + other-than-eligible dividends × 1.15federal credit = eligible taxable × 15.0198% + other taxable × 9.0301%provincial credit = eligible taxable × province rate + other taxable × province ratetax on dividends = tax(other income + taxable amount, less both credits) − tax(other income)federal + provincial, with the Ontario surtax
The federal credit is 6/11 of the 38% gross-up for eligible dividends and 9/13 of the 15% gross-up for other-than-eligible dividends. Both credits reduce tax and cannot take it below zero. The provincial rates in the table below are percentages of the taxable amount, taken from the CRA's 2025 provincial worksheets and, where we could read them, the province's own page or law for 2026. The calculator applies the Ontario credit before the Ontario surtax. Ontario has announced that its non-eligible rate would fall from 2.9863% to 1.9863% on January 1, 2027; that is not applied here. You can change the provincial rates in the rate fields.
Worked example: Ontario, $60,000 other income, $20,000 of eligible dividends
You live in Ontario with $60,000 of other taxable income and receive $20,000 of eligible dividends.
- Taxable amount: $20,000 × 1.38$27,600
- Federal credit: $27,600 × 15.0198%$4,145.46
- Ontario credit: $27,600 × 10%$2,760.00
- Extra tax caused by the dividends$1,277.94
- As a share of the $20,000 received6.39%
- Tax on $20,000 of ordinary income instead$5,930.00
The dividends add $1,277.94 of tax, against $5,930.00 if the same amount were interest or salary.
The credits are what make eligible dividends lighter than ordinary income at this level. At very high incomes the gap narrows.
Provincial and territorial dividend tax credit rates
These are the rates the calculator starts from, as a percentage of the taxable (grossed-up) amount. They come from the CRA's provincial worksheets for 2025. Where the province's own page or law could be read, it supports the same rate for 2026.
| Province or territory | Eligible | Other than eligible | Source |
|---|---|---|---|
| Alberta | 8.12% | 2.18% | 2025 CRA worksheet and the Alberta Act |
| British Columbia | 12% | 1.96% | BC page, 2026 |
| Manitoba | 8% | 0.7835% | 2025 CRA worksheet and the Manitoba Act |
| New Brunswick | 14% | 2.75% | 2025 CRA worksheet only |
| Newfoundland and Labrador | 6.3% | 3.2% | Newfoundland and Labrador page, 2026 |
| Northwest Territories | 11.5% | 6% | GNWT file, 2026 |
| Nova Scotia | 8.85% | 1.5% | 2025 CRA worksheet only |
| Nunavut | 5.51% | 2.61% | 2025 CRA worksheet only |
| Ontario | 10% | 2.9863% | Ontario page, 2026 |
| Prince Edward Island | 10.5% | 1.3% | 2025 CRA worksheet and the PEI Act |
| Saskatchewan | 11% | 2.519% | 2025 CRA worksheet and Saskatchewan bills |
| Yukon | 12.02% | 0.67% | 2025 CRA worksheet only |
Terms on this page
- Eligible dividend
- A dividend from a corporation that paid tax at the general rate, grossed up by 38%.
- Gross-up
- The increase to a dividend included in income, to approximate the corporation's pre-tax profit.
- Dividend tax credit
- A non-refundable credit worked out on the grossed-up dividend.
What has changed, and when
Rates on this page have not always been what they are today. If you are working on an earlier period, use the figure that applied at the time rather than the current one.
- 2025 Nova Scotia's other-than-eligible credit was cut to 1.5% of the taxable amount.
- Jan 2027 Ontario has announced a cut in its other-than-eligible credit to 1.9863%; not applied.
Common questions
What is the gross-up for eligible dividends?
38%. For tax purposes you include 138% of the eligible dividend you received. For other-than-eligible dividends the gross-up is 15%, so you include 115%.
What is the federal dividend tax credit?
15.0198% of the taxable amount of eligible dividends and 9.0301% of the taxable amount of other-than-eligible dividends, per the CRA's T5 guide.
How do I know whether my dividend is eligible?
Your T5 slip reports eligible and other-than-eligible dividends in separate boxes.
Why do the provincial rates differ?
Each province sets its own dividend tax credit. They run from 1.3% to 14% of the taxable amount in the table above.
Does the calculator work for Quebec?
No. Quebec has its own tax system and dividend credit, which this calculator does not model.
Where these numbers come from
- Canada Revenue Agency — T5 Guide: Return of Investment Income The 38% and 15% gross-ups and the 15.0198% and 9.0301% federal credits.
- Canada Revenue Agency — Line 12000: Taxable amount of dividends Multiply actual eligible dividends by 138% and other-than-eligible by 115% when you have no slip; modified June 12, 2026.
- Government of Ontario — Ontario dividend tax credit 10% eligible and 2.9863% other for 2020 to 2026, updated April 27, 2026.
- Government of British Columbia — Basic personal income tax credits 12% and 1.96% of the taxable amount for 2026 and 2025.
- Canada Revenue Agency — Provincial dividend tax credit worksheets (for example Ontario, form 5006-D) Line 61520 on each province's worksheet, forms 5001-D to 5014-D, for 2025.
Last verified 2026-10-23 Rates on this page are checked against the sources above at least once a year, and whenever the governing authority announces a change. Spotted something out of date? Tell us and we will fix it.
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