British Columbia -> Dividend tax credit
BC Dividend Tax Credit
BC Income Tax Act s. 4.69
BC and other provinces provide a personal non-refundable dividend tax credit for income from Canadian dividends. BC's Income Tax Act specifies the dividend tax credits for both eligible dividends and non-eligible dividends as a percentage of the federal gross-up amounts.
BC Dividend Tax Credit for Eligible Dividends
The BC September 2017 Budget increased the eligible dividend tax credit from 10% of the taxable dividend to 12%, effective January 1, 2019. This relates to the increase in the general corporate income tax rate from 11% to 12% effective January 1, 2018. The tables of marginal tax rates show the marginal tax rates for eligible and non-eligible dividends and other income.
Eligible Dividend Tax Credit Rates:
| Year | 2009 | 2010 | 2011 | 2012 - 2018 |
2019+ |
| Gross-up % | 45% | 44% | 41% | 38% | 38% |
| eligible dividend tax credit as a % of | |||||
| grossed-up dividends | 11% | 10.83% | 10.31% | 10.0% | 12.0% |
| actual dividends | 15.95% | 15.60% | 14.53% | 13.8% | 16.56% |
For marginal tax rates and thresholds for each year up to the current year, federally and for each province and territory, see the Tables of Marginal Tax Rates.
See our Tables of Eligible Dividend Tax Credit Rates for rates for all provinces and territories.
BC Ministry of Finance resources: Dividend Tax Credit
BC Dividend Tax Credit for Non-Eligible Dividends
The Federal 2016 Budget announced that the gross-up rate for non-eligible dividends would be not be revised further after 2016, and the Federal tax credit rate for these dividends would remain at 2016 rates. See the article on the non-eligible dividend tax credit for more information. BC did not subsequently make any changes to the non-eligible dividend tax credit rate.
The BC 2017 Budget proposed to reduce the dividend tax credit rate for non-eligible dividends from 17% of the gross-up to 15% of the gross-up, effective for the 2017 taxation year. This is due to the proposed reduction of the small business corporate income tax rate from 2.5% to 2% effective April 1, 2017. This change was confirmed by the BC September 2017 Budget.
The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends would be reduced to 16% for 2018, and to 15% for 2019 and later years.
The current and past BC rates for non-eligible dividends are shown in the following table. The 2018 and later rates will be in effect unless legislative changes are made by BC.
| BC Dividend Tax Credit Rate for Non-Eligible Dividends | ||||
| Year | Gross-up Rate |
%of
Federal Gross-up |
% of Grossed-up Taxable Dividend |
% of Actual Dividend |
| 2019+ | 15% | 15% | 1.96% | 2.25% |
| 2018 | 16% | 15% | 2.07% | 2.40% |
| 2017 | 17% | 15% | 2.18% | 2.55% |
| 2016 | 17% | 17% | 2.47% | 2.89% |
| 2014/2015 | 18% | 17% | 2.59% | 3.06% |
| 2010-2013 | 25% | 17% | 3.40% | 4.25% |
| 2009 | 25% | 21% | 4.20% | 5.25% |
| 2008 | 25% | 25.5% | 5.10% | 6.375% |
For current tax brackets and thresholds see BC Personal Marginal Income Tax Rates.
See our tables of non-eligible dividend tax credit rates for all provinces and territories.
See also BC Ministry of Finance Dividend Tax Credit information.
Revised: October 26, 2023