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Tax Comparison Investment Income 2017 - Dividends vs Interest

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Personal Tax -> Dividend tax credits ->
Tax Rates  -> Tax comparisons  -> Tax Comparisons Dividends vs Interest -> 2017

Tax Comparison of Canadian Dividends vs Interest in 2017

The tables on this page compare taxes payable by province/territory in 2017 for three different types of investment income:

bulletCanadian dividends eligible for the enhanced dividend tax credit,
bulletnon-eligible Canadian dividends, and 
bullet other investment income such as foreign dividends and interest.

The calculations assume that the income is earned by a single person, and that there is no other type of income included in taxable income.  The tax rates used are as known on May 29, 2017.  The total taxes payable include any alternative minimum tax, where applicable.

Taxes Payable on Dividends Eligible for the Enhanced Dividend Tax Credit

Note:  Eligible dividends gross-up % is 38%, as it has been since 2012.

Actual
Eligible
Dividends
Taxable
Income
Total Federal + Provincial Income Taxes Payable (Refundable) in 2017
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$30,000 $41,400 $0 $780 $351 $0 $907 $0 $(680) $(828) $450 $0 $810 $0 $0
50,000 69,000 0 900 1,709 0 3,819 1,810 (942) (1,200) 600 344 2,309 0 0
60,000 82,800 1,601 2,488 4,755 1,818 7,346 4,712 757 499 2,337 3,022 4,568 1,749 1,676
80,000 110,400 4,764 5,645 10,582 5,083 13,587 10,282 3,967 3,972 5,494 8,001 10,622 4,982 4,875
100,000 138,000 7,753 8,634 16,161 8,066 19,689 15,652 6,953 7,922 9,821 12,695 17,150 8,270 7,862

Taxes Payable on Non-Eligible Dividends

Note:  Non-eligible dividends gross-up % is 17% in 2016 and later years.

Actual
Non-eligible
Dividends
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2017
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT
$15,000 $17,550 $0 $(24) $685 $0 $0 $40 $(381) $(351) $0 $62 $131 $0 $0
30,000 35,100 872 1,166 2,585 1,217 1,044 1,510 (601) (702) 300 1,694 1,569 864 400
50,000 58,500 4,266 4,152 6,952 5,270 5,341 5,796 699 950 2,768 5,776 5,603 4,424 3,056
60,000 70,200 6,347 5,965 9,621 7,792 8,015 8,513 1,792 2,566 4,504 8,382 8,187 6,689 4,909
80,000 93,600 10,608 10,208 15,942 13,128 13,586 14,071 5,068 6,077 9,043 14,008 13,776 11,318 8,747
100,000 117,000 16,057 16,403 23,452 19,856 20,186 21,009 10,141 11,124 15,736 20,824 21,196 17,135 14,184

Taxes Payable on Other Income (foreign dividends, interest, etc.)

Interest
Income
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2017
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$15,000 $15,000 $505 $430 $1,001 $505 $505 $778 $197 $280 $522 $825 $444 $505 $720
30,000 30,000 3,886 3,953 4,993 4,465 4,584 4,672 3,145 2,830 4,056 4,895 5,528 4,253 3,930
50,000 50,000 9,110 9,185 10,739 10,321 10,368 10,886 7,532 6,640 8,910 10,800 11,712 9,723 8,541
60,000 60,000 12,160 12,005 14,064 13,853 14,068 14,445 10,342 9,190 11,875 14,230 15,518 13,048 11,491
80,000 80,000 18,260 17,707 21,272 20,917 21,576 21,879 16,102 14,690 18,059 21,554 23,142 19,698 17,391
100,000 100,000 24,810 24,548 29,302 28,735 29,386 29,820 22,977 20,889 25,681 29,471 31,724 26,798 23,895

Notes re all three tables:
     - BC includes MSP premiums payable for 2018 based on 2017 income.
     - Ontario - includes Ontario Health Premium.
     - QC includes contribution to the health services fund and prescription drug insurance plan premiums.
     - QC taxes are net of tax credit for person living alone.

To see the tax results for your own income situation, and how it would change if the type of investment income changes, use our Income Tax Planning Calculators, in particular the Investment Income Tax Calculator.  However, the Investment Income Tax Calculator does not include BC MSP in the total taxes, because MSP is not actually part of the income tax system.  In the detailed Canadian Income Tax and RRSP Savings Calculator, the BC MSP is shown at the bottom of the calculator, but not included in the total taxes payable.

See also:

Tax Comparison of Investment Income for Seniors

Tax Comparisons of Taxes Payable on Employment Income by Province and Territory

Tax Tip:  Interest and foreign dividends are not as tax-efficient as Canadian dividends!

Revised: September 20, 2017

 

 

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