Dividend Tax Calculator Canada 2026
Estimate tax on eligible and non-eligible Canadian dividends with the 2026 gross-up and federal and provincial dividend tax credits.
Calculate your estimate
Tax year 2026 · Canadian dollars · results update automatically
Enter actual dividends from taxable Canadian corporations (T5 box 24 for eligible, box 10 for other than eligible). The gross-up and federal and provincial dividend tax credits are applied; foreign dividends go in other taxable income.
Results update automatically
General annual estimate; actual payroll withholding and tax return may differ.
Dividend Tax Calculator
- Dividends received (actual amount)
- $10,000.00
- Eligible dividends — taxable amount (38% gross-up)
- $13,800.00
- Other-than-eligible dividends — taxable amount (15% gross-up)
- $0.00
- Federal dividend tax credit
- $2,072.73
- Provincial dividend tax credit
- $1,380.00
- Federal tax on dividends
- $756.27
- Provincial tax on dividends
- -$113.47
- Total tax on dividends
- $642.80
- After-tax dividends
- $9,357.20
- Effective tax rate on dividends
- 6.43%
- Marginal rate — eligible dividends
- 8.91%
- Marginal rate — other-than-eligible dividends
- 22.38%
- General annual estimate; payroll withholding and the final return can differ.
- Dividends use the 2026 gross-up and dividend tax credits; alternative minimum tax is not calculated.
- Tax on dividends is the change in annual tax when the dividends are added to your other income; it can be negative.
How the estimate works
Federal and provincial tax bands apply progressively. Basic personal credits reduce tax, then standard employee pension and insurance contributions are deducted. Quebec uses its own QPP, EI and QPIP rules.
This is an annual estimate. Pay-period withholding, individual credits, benefits and your final tax return may differ.
Dividends from taxable Canadian corporations are grossed up — eligible dividends by 38% and other-than-eligible dividends by 15% — and the grossed-up amount is taxed at your marginal rates. The federal dividend tax credit (15.0198% or 9.0301% of the grossed-up amount) and your province’s or territory’s credit then reduce the tax; both credits are non-refundable.
Tax on dividends is the change in annual federal and provincial tax when the dividends are added to your other income. In Ontario the surtax is calculated before the dividend tax credit, as on form ON428; in Quebec the line 415 credit applies to the actual dividend. Alternative minimum tax is not calculated.
2026 dividend tax credit rates
Rates are a percentage of the taxable (grossed-up) amount unless stated. Provincial rates come from the 2025 CRA worksheets and Revenu Québec, confirmed for 2026 by legislation or a provincial publication where available.
| Jurisdiction | Eligible dividends | Other-than-eligible dividends | Return line | Status |
|---|---|---|---|---|
| Federal | 15.0198% | 9.0301% | T1 line 40425 | Confirmed for 2026 |
| Alberta | 8.12% | 2.18% | AB428 line 61520 | Confirmed for 2026 |
| British Columbia | 12.00% | 1.96% | BC428 line 61520 | Confirmed for 2026 |
| Manitoba | 8.00% | 0.7835% | MB428 line 61520 | Confirmed for 2026 |
| New Brunswick | 14.00% | 2.75% | NB428 line 61520 | Confirmed for 2026 |
| Newfoundland and Labrador | 6.30% | 3.20% | NL428 line 61520 | Confirmed for 2026 |
| Nova Scotia | 8.85% | 1.50% | NS428 line 61520 | Latest official rate (2025) |
| Northwest Territories | 11.50% | 6.00% | NT428 line 61520 | Confirmed for 2026 |
| Nunavut | 5.51% | 2.61% | NU428 line 61520 | Latest official rate (2025) |
| Ontario | 10.00% | 2.9863% | ON428 line 61520 | Confirmed for 2026 |
| Prince Edward Island | 10.50% | 1.30% | PE428 line 61520 | Confirmed for 2026 |
| Quebec | 16.146% of the actual dividend | 3.933% of the actual dividend | TP-1 line 415 | Confirmed for 2026 |
| Saskatchewan | 11.00% | 2.519% | SK428 line 61520 | Confirmed for 2026 |
| Yukon | 12.02% | 0.67% | YT428 line 61520 | Latest official rate (2025) |
Official sources
- Justice Laws — Income Tax Act s. 82(1)(b): 15% and 38% dividend gross-up
- Justice Laws — Income Tax Act s. 121: federal dividend tax credit (9/13 and 6/11 of the gross-up)
- CRA — T4015 T5 Guide (Rev. 25): boxes 10–12 and 24–26 (taxable amount and dividend tax credit)
- CRA — Federal Worksheet 5000-D1 E (25), lines 12000/12010 and 40425 federal dividend tax credit
- CRA — Worksheet AB428 (5009-D E (25)), line 61520 Alberta dividend tax credit
- Alberta King’s Printer — Alberta Personal Income Tax Act s. 21 (149/890 and 227/770 of the gross-up)
- CRA — Worksheet BC428 (5010-D E (25)), line 61520 British Columbia dividend tax credit
- Government of B.C. — B.C. basic personal income tax credits: 2026 dividend tax credit 12% / 1.96%
- CRA — Worksheet MB428 (5007-D E (25)), line 61520 Manitoba dividend tax credit
- Manitoba Laws — The Income Tax Act, C.C.S.M. c. I10, s. 4.7 (8% / 0.7835%)
- CRA — Worksheet NB428 (5004-D E (25)), line 61520 New Brunswick dividend tax credit
- Legislative Assembly of New Brunswick — Bill 23 (2018) amending s. 35 of the New Brunswick Income Tax Act (14% / 2.75%)
- CRA — Worksheet NL428 (5001-D E (25)), line 61520 Newfoundland and Labrador dividend tax credit
- House of Assembly NL — Income Tax Act, 2000 s. 20 (6.3% / 3.2%)
- CRA — Worksheet NS428 (5003-D E (25)), line 61520 Nova Scotia dividend tax credit
- CRA — Nova Scotia tax information for 2025 (other-than-eligible dividend tax credit rate changed to 1.5%)
- CRA — Worksheet NT428 (5012-D E (25)), line 61520 Northwest Territories dividend tax credit
- Government of the Northwest Territories — Income Tax Act s. 2.32 (11.5% / 6%)
- CRA — Worksheet NU428 (5014-D E (25)), line 61520 Nunavut dividend tax credit
- CRA — Worksheet ON428 (5006-D E (25)), line 61520 Ontario dividend tax credit
- Ontario Ministry of Finance — Ontario dividend tax credit rates (2020–2026: 10.0% / 2.9863%)
- CRA — Worksheet PE428 (5002-D E (25)), line 61520 Prince Edward Island dividend tax credit
- Prince Edward Island Legislative Counsel — Income Tax Act s. 20 (10% and 38.13% of the gross-up)
- Revenu Québec — Guide TP-1.G (2025), lines 128, 166, 167 and 415 (16.1460% / 3.9330% of the actual dividend)
- Finances Québec — Bulletin d’information 2026-3: non-eligible credit stays 3.42% of the grossed-up dividend until 31 December 2026
- CRA — Worksheet SK428 (5008-D E (25)), line 61520 Saskatchewan dividend tax credit
- Government of Saskatchewan — The Income Tax Act, 2000 s. 32(h) (19.312% and 39.95% of the gross-up)
- CRA — Worksheet YT428 (5011-D E (25)), line 61520 Yukon dividend tax credit
- CRA — 2026 federal and provincial income tax rates
- Manitoba Laws — The Income Tax Act (Manitoba) s. 4.1(2): 2026 thresholds $47,000 and $100,000, no longer indexed (CRA T4127 2026 Table 8.1)
- Revenu Québec — 2026 income tax rates
- Revenu Québec — TP-1015.F-V (2026-01): deduction for workers (6%, up to $1,450) and 2026 basic personal amount of $18,952 with no separate QPP, QPIP or EI credit (TP-1 lines 201 and 350)
- Ontario Ministry of Finance — Low-Income Workers Tax Credit (LIFT credit): $875 or 5.05% of employment income, reduced by 5% of adjusted net income over $32,500 (updated 2026-07-15)
- Ontario e-Laws — Taxation Act, 2007 s. 21.1(3.1): LIFT credit for 2022 and later years, amounts not indexed (consolidation from 2026-07-01)
Rule review
Canada · tax year 2026 · version ca-2026.2
Last checked: 10 October 2026.
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