TaxTips.ca
Canadian Tax and
Financial Information
Tax Comparison Seniors Investment Income 2012/2011

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources


Personal Tax -> Dividend tax credits -> 
                          Tax Rates -> Tax Comparisons ->  Tax comparison for seniors with investment income -> 2012 and 2011

Seniors Tax Comparison of Canadian Dividends vs Other Investment Income 2012 and 2011

The tables on this page compare taxes payable by province in 2012 and 2011 for two different types of income:

bulletCanadian dividends eligible for the enhanced dividend tax credit, and
bulletother income.

The calculations assume that the income is received by a single senior. The tax rates used are as known on November 10, 2012.

The total income in each case includes:

bullet $6,000 of Old Age Security
bullet $6,000 of Canada Pension Plan retirement income
bullet $24,000 of pension income eligible for the pension tax credit
bullet plus either
  1. $30,000 of Canadian dividends eligible for the enhanced dividend tax credit, or
  2. $30,000 of other income, which could be interest, foreign dividends, pension income, or other income with no special tax treatment.

 
Income
Type
Total
Income
Taxable
Income

Total Federal + Provincial Income Taxes Payable in 2012

AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

A. Cdn Eligible Dividends $66,000 $76,224 $8,380 $7,745 $11,949 $8,939 $9,526 $12,112 $5,817 $6,715 $9,694 $11,153 $13,412 $9,386 $6,759
B. Other Income 66,000 66,000 14,031 13,600 16,092 15,233 15,283 16,635 12,070 10,778 13,821 16,356 18,240 15,174 13,547

Notes:
     - Clawback of OAS ($1,176) is included as taxes payable - the clawback only occurs in the Canadian eligible dividends case
     - BC includes MSP premiums payable for 2013 based on 2012 income
     - Ontario - includes Ontario Health Premium
     - QC includes health contribution, contribution to the health services fund, and prescription drug insurance plan premiums

Income
Type
Total
Income
Taxable
Income

Total Federal + Provincial Income Taxes Payable in 2011

AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

A. Cdn Eligible Dividends $66,000 $76,705 $8,343 $7,602 $10,691 $8,924 $9,545 $12,085 $5,789 $6,609 $9,743 $11,111 $13,470 $9,394 $6,731
B. Other Income 66,000 66,000 14,256 13,780 16,293 15,462 15,540 16,809 12,313 11,014 14,063 16,530 18,408 15,420 13,795

Notes:
     - Clawback of OAS ($1,595) is included as taxes payable - the clawback only occurs in the Canadian eligible dividends case
     - BC includes MSP premiums payable for 2012 based on 2011 income
     - Ontario - includes Ontario Health Premium
     - QC includes health contribution, contribution to the health services fund, and prescription drug insurance plan premiums

Although the higher taxable income with Canadian eligible dividends causes a clawback of the OAS and a higher clawback of the age credit, the taxes payable are still significantly lower.

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.

See also Tax Comparisons by Province and Territory, which compares different levels of employment income for people who are not seniors.

 

Revised: September 20, 2017

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.