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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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