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🇨🇦 Canada Dividend Tax Calculator

Determine your tax on Canadian dividends, including the gross-up and dividend tax credit for both eligible and non-eligible dividends. Compare effective tax rates by province for 2025.

Contexto de la Regla Regional

JurisdiccionCanada
MonedaCA$ (CAD)
Vigente desde1 ene 2025
Version1.0
Ultima revision1 mar 2026
Proxima revision1 jul 2026
Fuente: Canada Revenue Agency (CRA)

Canada Tasas y Reglas

Ingresa valores

Actual dividend received before gross-up

Eligible dividends come from public corporations

Resultado

Ingresa los valores arriba y haz clic en Calcular para ver tu resultado.

Asistente IA

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Puedo ayudarte a entender la formula de canada dividend tax calculator, interpretar tus resultados y responder preguntas de seguimiento.

Intenta preguntar

Aviso: Aviso: Esta calculadora usa reglas publicas vigentes desde la fecha indicada. Los resultados son solo informativos. Verifique con fuentes oficiales. Ultima revision: 1 mar 2026.

Formula

Taxable Dividend = Actual Dividend x Gross-Up Factor Federal Tax = Taxable Dividend x Marginal Rate - Federal DTC Provincial Tax = Taxable Dividend x Provincial Rate - Provincial DTC

Canadian dividends are "grossed up" to approximate pre-tax corporate income, then a dividend tax credit (DTC) offsets the corporate tax already paid. Eligible dividends from public corporations are grossed up by 38% with a higher DTC, while non-eligible dividends are grossed up by 15% with a lower DTC.

Preguntas Frecuentes

What is the difference between eligible and non-eligible dividends?

Eligible dividends are paid by public corporations and large CCPCs from income taxed at the general corporate rate. Non-eligible dividends come from small business income taxed at the lower SBD rate. Eligible dividends get a larger gross-up (38%) and tax credit, resulting in lower personal tax.

What is the dividend gross-up?

The gross-up increases the dividend amount to approximate the pre-tax corporate income that generated it. Eligible dividends are grossed up by 38% ($1,000 becomes $1,380 taxable). Non-eligible dividends are grossed up by 15% ($1,000 becomes $1,150 taxable). The dividend tax credit then offsets most of this additional tax.

What is the effective tax rate on eligible dividends?

In the lowest federal bracket, eligible dividends can have a negative effective rate (you pay less tax than on the same amount of employment income). In Ontario at moderate incomes, the combined effective rate is roughly 7-25% depending on your bracket, compared to 20-40%+ on salary.

Are dividends in a TFSA taxed?

No. Dividends earned inside a TFSA, RRSP, or FHSA are completely sheltered from tax. The gross-up and DTC system only applies to dividends received in non-registered accounts.

Should I pay myself salary or dividends from my corporation?

It depends on your situation. Salary creates RRSP room and CPP benefits but costs more in payroll taxes. Dividends have lower effective tax rates but do not create RRSP room or CPP credits. Many owners use a mix of both. Consult an accountant for your specific circumstances.

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