2015 Tax Comparison of Canadian Dividends vs Interest

The tables on this page compare taxes payable by province/territory in 2015 for three different types of investment income:

- Canadian eligible dividends

- Canadian non-eligible Canadian dividends, and

- 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 June 13, 2016. The total taxes payable include any alternative minimum tax, where applicable.

Taxes Payable on Eligible Dividends

Actual Eligible Dividends	Taxable Income	Total Federal + Provincial Income Taxes Payable (Refundable) in 2015
Actual Eligible Dividends	Taxable Income	AB	BC	MB	NB	NL	NS	NT	NU	ON	PE	QC	SK	YT
$30,000	$41,400	$0	$900	$376	$0	$584	$0	$(680)	$(828)	$450	$0	$905	$0	$0
50,000	69,000	0	900	1,780	0	2,544	1,810	(942)	(1,200)	600	388	2,606	0	0
60,000	82,800	1,423	2,319	4,552	1,500	5,106	4,391	516	258	2,169	2,745	4,910	1,476	1,450
80,000	110,400	4,505	5,397	10,264	5,277	10,407	9,827	3,621	3,721	5,247	7,591	11,058	4,593	4,550
100,000	138,000	7,494	8,387	15,843	9,613	15,636	15,197	6,608	7,671	9,686	12,284	17,800	7,981	7,537

Note that in 2015 Albertans will actually pay a small amount of provincial tax on eligible dividends (compared to zero previously), due to the tax rate increases which took effect October 1, 2015. The amount will be more in 2016 when the higher tax rates are in effect for the full year. The highest marginal tax rate for eligible dividends for AB is 21.02%, but will be 26.19% in 2016.

Taxes Payable on Non-Eligible Dividends

Note: Non-eligible dividends gross-up % is 18% in 2015. It will be 17% in 2016 and later years.

Actual Non-eligible Dividends	Taxable Income	Total Federal + Provincial Income Taxes Payable in 2015
Actual Non-eligible Dividends	Taxable Income	AB	BC	MB	NB	NL	NS	NT	NU	ON	PE	QC	SK	YT
$15,000	$17,700	$0	$(21)	$709	$0	$0	$26	$(383)	$(354)	$0	$148	$160	$0	$0
30,000	35,400	621	1,272	2,629	1,034	619	1,485	(605)	(708)	300	1,717	1,558	970	418
50,000	59,000	3,901	4,064	7,094	5,048	4,253	5,839	780	1,012	2,820	5,871	6,037	4,715	3,204
60,000	70,800	6,012	5,963	9,973	7,621	6,546	8,686	2,006	2,755	4,665	8,616	8,747	7,144	5,188
80,000	94,400	10,432	10,617	16,675	13,212	11,509	14,597	5,822	6,661	9,796	14,594	14,756	12,201	9,451
100,000	118,000	15,596	16,741	24,122	19,703	17,217	21,437	10,821	11,602	16,379	21,316	22,188	18,003	14,812

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

Interest Income	Taxable Income	Total Federal + Provincial Income Taxes Payable in 2015
Interest Income	Taxable Income	AB	BC	MB	NB	NL	NS	NT	NU	ON	PE	QC	SK	YT
$15,000	$15,000	$551	$476	$1,062	$551	$551	$824	$266	$340	$614	$966	$467	$551	$786
30,000	30,000	3,980	4,383	5,054	4,566	4,436	4,718	3,214	2,890	4,118	4,986	5,461	4,381	3,996
50,000	50,000	9,350	9,419	10,956	10,594	10,067	11,079	7,777	6,882	9,171	11,037	12,170	10,071	8,785
60,000	60,000	12,550	12,389	14,431	14,276	13,517	14,788	10,737	9,582	12,286	14,617	16,107	13,571	11,885
80,000	80,000	18,950	18,448	21,985	21,641	20,497	22,522	16,797	15,382	18,812	22,242	23,981	20,571	18,085
100,000	100,000	25,774	25,606	30,289	29,769	27,981	30,737	24,025	21,901	26,875	30,436	32,855	27,995	24,910

Notes re all three tables:

	BC includes MSP premiums payable for 2016 based on 2015 income.
	Ontario - includes Ontario Health Premium.
	QC includes progressive health contribution, 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.

TaxTips.ca Resources

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: October 26, 2023