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               Individual Marginal Tax Rates for Non-Eligible Dividends

1,2

—2014

$11,139 

to $43,953

$43,954 

to $87,907

$87,908 

to $136,270

$136,271

and over

British Columbia

11.39%

18.99%

31.97%

35.51/37.98%

Alberta

3

 

12.84

21.10

25.82

29.36

Saskatchewan

4

 

13.69

24.29

29.01

34.91

Manitoba

5

 

16.47

27.54

37.23

40.77

Ontario

6,7

5.35

18.45

32.91

36.45/38.29

/40.13

Quebec

8

14.49

26.10

36.83

39.79

New Brunswick

9

13.41

24.19

30.92

36.02

Nova Scotia 

8.14

25.70

31.40

34.94/39.07

P.E.I.

10

12.48

28.89

35.20

38.74

Newfoundland 

and Labrador

11

Dividends received 

before July 1, 2014
Dividends received 

after June 30, 2014

7.89

8.95

21.81

22.87

27.47

28.54

31.01

32.08

  Notes

(1) These rates apply to “non-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 tax brackets above the top federal tax bracket, additional rates 

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

British Columbia and Nova Scotia, or on income between $150,000 and $220,000 or  

above $220,000 in Ontario should use these higher rates.

 

The grossed-up dividend (118% 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.

(2) The federal gross-up on non-eligible dividends decreased to 18% (from 25%) effective 

January 1, 2014 and the corresponding dividend tax credit (DTC) decreased to 11% (from 

13.33%)

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