36  /

Notes, continued

(2) The 2014 Ontario budget proposed to create a new personal income tax bracket effective 

January 1, 2014 for taxable income between $150,000 and $220,000. The budget also 

proposed to lower the taxable income threshold for the top tax bracket from $514,090 to 

$220,000 effective January 1, 2014 (see the table “Federal and Provincial/Territorial Income 

Tax Rates and Brackets for 2014 and 2015”). These rates and brackets may be subject to 

change pending the results of the June 12 provincial election.

(3) Ontario’s 2013 Economic Update proposed to increase the dividend tax credit rate (DTC) 

on eligible dividends to 10% (from 6.4%) of the taxable amount of the dividend effective 

January 1, 2014. The province also proposed to calculate the Ontario surtax before 

deducting any dividend tax credits from Ontario tax. 

(4) The 2014 Newfoundland and Labrador budget proposed to decrease the province’s DTC 

rate on eligible dividends to 5.4% (from 11.0%) of the taxable amount of the dividend 

effective July 1, 2014.

Individual Marginal Tax Rates for Eligible Dividends

1

—2014

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