40  /

Dividend Tax 

Credit Rate

2

Amount of Dividend 

Received Tax Free

Actual

Dividend

Taxable

Dividend

Actual

Dividend

Taxable

Dividend

Federal

13.00%

11.02%

$ 35,546

$ 41,944

British Columbia 

3.06

2.59

22,285

26,296

Alberta

3

3.66

3.10

21,841

25,772

Saskatchewan

4

4.01

3.40

18,862

22,257

Manitoba

5

0.98

0.83

9,367

11,053

Ontario

6

5.31

4.50

42,910

50,634

Quebec

7

8.32

7.05

21,409

25,263

New Brunswick

8

 

6.25

5.30

22,487

26,535

Nova Scotia 

6.93

5.87

21,657

25,555

Prince Edward Island

9

3.78

3.20

12,828

15,137

Newfoundland and 

Labrador

10

 

Dividends received 

before July 1, 2014
Dividends received 

after June 30, 2014

5.90

4.84

5.00

4.10

18,633

18,633

21,987

21,987

Non-Eligible Dividend Tax Credit Rates and Amount of Dividends 

that may be Received Without Incurring Tax in 2014

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 2014”). The gross-up rate for 

non-eligible dividends is 18%. The actual amount received is therefore multiplied by 1.18 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) Alberta’s DTC rate on non-eligible dividends decreased to 3.1% (from 3.5%) effective 

January 1, 2014. 

(4) Saskatchewan’s DTC rate on non-eligible dividends increased to 3.4% (from 3.05%) 

effective January 1, 2014.

© 2014 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 December 31, 2014