TaxTips.ca
Canadian Tax and
Financial Information
Nova Scotia Dividend Tax Credit

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!      Internet Explorer - Use compatibility view for calculators to work properly!

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



Atlantic Provinces -> Nova Scotia

Nova Scotia Dividend Tax Credit

NS Eligible Dividends

NS Income Tax Act s. 21(b)

The dividend tax credit for dividends eligible for the enhanced dividend tax credit is 8.85% of grossed-up dividends.  This change was effected by Bill 27 Financial Measures (2011) Act, which was introduced in April 2011.

The resulting enhanced dividend tax credit rates for Nova Scotia are:

NS Enhanced Dividend Tax Credit

Year 2009 2010 2011 2012
& later
Gross-up % 45% 44% 41% 38%
enhanced dividend tax credit as a % of
grossed-up dividends 8.85% 8.85% 8.85% 8.85%
actual dividends 12.83% 12.74% 12.48% 12.21%

NS Non-Eligible Dividends

NS Income Tax Act s. 21(a)

The Nova Scotia dividend tax credit rate for non-eligible dividends (also know as regular dividends, or small business dividends) is defined as 22.94% of the federal gross-up, as revised by the NS 2015 budget.  For 2014 and earlier years, it was 38.5% of the federal gross-up.  The budget documents indicated that the dividend tax credit rate would be 3.5% of the taxable dividend, but the legislation revised the percentage of gross-up.

The Federal 2016 Budget announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be not be revised further after 2016, and the Federal tax credit rate for these dividends would remain at 2016 rates.  The NS 2016 Budget did not announce any change to this tax credit.

The rates for non-eligible, or small business dividends, if the NS tax credit rate remains at 22.94%% of the gross-up after 2015, are reflected in the following table.  The Nova Scotia 2016 budget did not announce any changes to this tax credit.

     NS Dividend Tax Credit Rate for Non-Eligible Dividends

Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2016 + 17% 22.94% 3.33% 3.90%
2015 18% 22.94% 3.5% 4.13%
2014 18% 38.5% 5.87% 6.93%
2013 25% 38.5% 7.7% 9.625%

The Nova Scotia table of marginal tax rates show the marginal tax rates for eligible and non-eligible dividends and other income.

 

Revised: August 18, 2016

 

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.