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Individual Marginal Tax Rates for Eligible Dividends—2013

  Notes

• These rates apply to “eligible dividends” and take into account all federal and provincial

taxes and surtaxes, but do not include provincial health premiums (see the table 

“Provincial Health Premiums”). The respective basic personal and dividend tax credits are 

also included in the calculations.

• As more than one rate could apply to a particular bracket due to a difference in the federal

and provincial bracket thresholds, the rate indicated in the table is that which applies 

to income in approximately the middle range of the bracket. The table assumes that an 

individual has regular income that places the individual in the middle of the above tax 

brackets before taking the dividend income into account.

For provinces that have a top bracket above the top federal tax bracket, a second rate has 

been included in the table. Individuals taxable on income in excess of $150,000 in Nova 

Scotia, or on income above $509,000 in Ontario should use this higher rate. 

• The grossed-up dividend (138% of the cash dividend) is used to determine which marginal

tax bracket will apply. However, when calculating the tax, the marginal rate should be 

applied to the cash dividend.

• Significant dividend income in addition to the income in the middle range of the bracket

may attract tax at a rate higher than what is shown. Therefore, for purposes of estimating 

taxes applicable to this income, the rate in the next bracket should be used in order to be 

conservative.

$11,039

to $43,561

$43,562

to $87,123

$87,124

to $135,054

$135,055

and over

British Columbia

(2.43%)

6.46%

21.64%

25.78%

Alberta 

(0.03)

9.63

15.15

19.29

Saskatchewan 

(0.03)

12.39

17.91

24.81

Manitoba 

3.84

16.19

28.13

32.27

Ontario

(1.89)

13.43

25.40

29.54/33.85

Québec

5.64

19.22

31.77

35.22

New Brunswick

0.51

11.66

18.58

24.92

Nova Scotia 

(0.11)

20.42

27.09

31.23/36.06

P.E.I.

(0.99)

18.19

24.57

28.71

Newfoundland and 

Labrador

(4.58)

11.70

18.33

22.47

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current as of September 30, 2013