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Investment Income Tax Calculator - Information Page

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Calculators > Investment Income Tax Calculator

Investment Income Tax Calculator for 2016 and 2017

Quebec Investment Income Tax Calculator for 2016 and 2017

Above links will open calculators in new windows.

Note:  best viewed in Chrome or Firefox.  If using IE, use compatibility view for the calculators to work properly.

The Investment Income Tax Calculator (select above) works for all provinces and territories, with a separate one for Quebec.

The purpose of the calculator 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
bulletOld Age Security
bulletCanada Pension Plan or Quebec Pension Plan
bullet capital gains
bullet Canadian eligible dividends
bullet Canadian non-eligible dividends
bulletRRSP or RRIF withdrawals (don't include RRIF withdrawals if your age is 65+
bulletOther income, including foreign dividends, interest income, etc.
bulletPension income that is eligible for the pension income tax credit.  Include RRIF withdrawals here if your age is 65+

What will it show you?

bulletTotal actual income and total taxable income
bulletTaxes payable (federal plus provincial) before OAS clawback
bulletOAS clawback
bulletTotal federal and provincial taxes payable

What is included in the calculations?
bulletall 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.

Check out our other calculators.

Feel free to link to the Calculators page at www.TaxTips.ca/calculators.htm from your website.

Revised: May 14, 2017

 

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