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