Dividend Tax
Credit Rate
2
Amount of Dividend
Received Tax Free
Actual
Dividend
Taxable
Dividend
Actual
Dividend
Taxable
Dividend
Federal
3
16.67%
13.33%
$ 43,430
$ 54,288
British Columbia
4.25
3.40
25,058
31,323
Alberta
4.38
3.50
21,652
27,065
Saskatchewan
5.00
4.00
19,163
23,954
Manitoba
4
2.19
1.75
9,439
11,799
Ontario
5.63
4.50
40,139
50,174
Québec
10.00
8.00
22,390
27,988
New Brunswick
6.63
5.30
21,697
27,121
Nova Scotia
9.63
7.70
28,339
35,424
Prince Edward Island
5
3.63
2.90
11,656
14,570
Newfoundland and Labrador
6.25
5.00
19,280
24,100
Non-Eligible Dividend Tax Credit Rates and Amount of Dividends
that may be Received Without Incurring Tax in 2013
1
Notes
(1) This table assumes only “non-eligible dividend” income is earned and takes into account
all federal and provincial taxes, surtaxes, and alternative minimum taxes, but does not
include provincial premiums (see the table “Provincial Health Premiums”). The respective
basic personal and dividend tax credits and provincial tax reductions, where applicable, are
also included.
“Non-eligible” dividends are those that are not subject to the dividend rules applying
to “eligible” dividends (see the table “Eligible Dividend Tax Credit Rates and Amount of
Dividends that may be Received Without Incurring Tax in 2013”). The gross-up rate for
non-eligible dividends is 25%. The actual amount received is therefore multiplied by 1.25 to
determine the taxable amount of the dividend.
(2) The federal and provincial dividend tax credit (DTC) rates in the table’s first column apply
to the actual amount of the dividend received by an individual. The DTC rate can also be
expressed as a percentage of the taxable dividend, as indicated in the table’s second
column.
(3) The federal gross-up on non-eligible dividends paid after 2013 will decrease to 18% (from
25%) and the corresponding dividend tax credit will decrease to 11% (from 13.33%).
Accordingly, the federal effective tax rate on non-eligible dividends paid after 2013 will
increase.
(4) In response to the federal change to the gross-up of non-eligible dividends (see Note (3)),
Manitoba’s dividend tax credit rate will decrease from 1.75% to 0.83% beginning in 2014.
This decrease will effectively result in the same amount of provincial tax payable on non-
eligible dividend income earned before and after the federal change.
(5) P.E.I. increased its dividend tax credit rate on non-eligible dividends to 2.9% (from 1%) of
the taxable amount of the dividend effective January 1, 2013.
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Current as of September 30, 2013