The purpose is to show the big
difference in taxes payable on different types of investment income.
Even when the age credit and Old Age Security are clawed back, Canadian
dividends and capital gains result in the least taxes payable when
compared to other types of income such as foreign dividends and
interest.
To compare a couple of scenarios side by side, open the
calculator by clicking the link above (the calculator will open in a new
tab), then come back to this page, right click on the above link, and
select "Open in a new window". You now have 2 instances of
the calculator open so that you can compare the results.
You can also see comparisons of the taxes on eligible
dividends vs other types of interest, for every province and territory,
both for seniors and non-seniors. See our Tax
Comparisons article.
You input the amount of income from
Old Age Security
Canada Pension Plan or Quebec Pension Plan
Capital gains before the June 25, 2024 inclusion rate change
Capital gains on or after June 25, 2024 (not yet in the QC calculator)
Canadian eligible dividends
Canadian non-eligible dividends
RRSP or RRIF withdrawals: if your age
is 65+, enter RRIF withdrawals in pension income eligible for the
pension tax credit
Other income, including foreign dividends, interest income, etc.
Pension income that is eligible for the pension income tax
credit. Include RRIF withdrawals here if your age is 65+
What will it show you?
Total actual income and total taxable income
Taxes payable (federal plus provincial) before OAS clawback
OAS clawback
Total federal and provincial taxes payable
What is included in the calculations?
applicable tax credits that are included in the Canadian Tax Calculator or
Quebec Tax Calculator
Use the area where you
can enter the current tax results, then shift income to a different type,
and see the difference in taxes payable. Shifting income from other
income, such as interest, to Canadian dividends will reduce the total
taxes payable even when the OAS clawback increases.
To see tax rate tables for each province, go to the Tax
Rates page.
If you would like a more detailed
calculator into which you can also input employment and self-employment
income, and which will show
you how much you can save by making an RRSP contribution, see our more
detailed Canadian Tax Calculator, and Quebec
Tax Calculator.