2024 Tax Comparison of Canadian Dividends vs Interest

Taxes Payable on Canadian Eligible Dividends

Taxes Payable on Canadian Non-Eligible Dividends

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

Tax Comparison Calculation Information

The calculations below of taxes payable assume that:

	the income is earned by a single person, and
	*there is no other type of income included in taxable income*.

Notes:

	The Canada Carbon Rebate is *not included*.
	ON provincial tax includes Ontario Health Premium.
	QC total tax is net of the refundable federal tax abatement.
	QC provincial tax includes progressive health contribution and prescription drug premiums (for both spouses in married person case).

The tax rates used are as known on August 20, 2024.

Taxes Payable on Canadian Eligible Dividends

Due to the alternative minimum tax changes for 2024, there is no alternative minimum tax in any of the cases below, resulting in much less tax than in 2023.

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

The NT & NU refundable amounts are from their cost of living tax credits.

TaxTips.ca 2024 Taxes on Eligible Dividends
Actual	$20,000	$70,000	$120,000	$200,000
Taxable	27,600	96,600	165,600	276,000
AB	0	0	7,881	30,141
BC	0	0	6,609	23,742
MB	0	1,968	14,905	41,891
NB	0	0	6,609	26,398
NL	0	4,607	17,999	48,505
NS	0	3,998	17,122	47,144
NT	(507)	(942)	5,667	22,276
NU	(552)	(1,500)	6,409	29,441
ON	300	750	8,710	36,244
PE	0	1,396	13,259	38,976
QC	704	2,903	17,754	47,397
SK	0	0	6,609	26,920
YT	0	0	6,609	23,218

Taxes Payable on Canadian Non-Eligible Dividends

Note: Non-eligible dividends gross-up % is 15%, as it has been since 2019.

The NT & NU refundable amounts are from their cost of living tax credits.

There is no alternative minimum tax at any level of non-eligible dividends in 2024 when dividends are the only income, because regular tax is always higher than the minimum tax.

TaxTips.ca 2024 Taxes on Non-Eligible Dividends
Actual	$20,000	$70,000	$120,000	$200,000
Taxable	23,000	80,500	138,000	230,000
AB	0	7,911	20,448	47,293
BC	0	6,523	19,648	49,888
MB	600	10,817	27,505	60,288
NB	0	9,337	24,607	55,866
NL	0	9,455	24,663	55,547
NS	325	11,231	27,510	61,155
NT	(450)	2,863	13,424	37,835
NU	(460)	3,490	14,683	39,478
ON	180	6,781	21,336	53,655
PE	343	11,617	28,929	62,463
QC	258	11,570	29,675	65,090
SK	0	8,857	22,636	50,939
YT	313	8,053	21,382	49,444

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

TaxTips.ca 2024 Taxes on Other Income
Actual	$20,000	$70,000	$120,000	$200,000
Taxable	20,000	70,000	120,000	200,000
AB	644	13,733	29,438	60,382
BC	644	12,409	27,817	61,331
MB	1,071	15,226	33,236	68,844
NB	644	15,197	33,304	68,315
NL	644	15,625	34,016	69,260
NS	1,343	16,978	36,268	73,707
NT	387	11,608	27,290	59,395
NU	294	10,073	24,447	54,005
ON	840	13,191	30,104	66,501
PE	922	16,032	35,264	71,803
QC	844	16,601	36,362	75,230
SK	803	14,689	31,644	64,357
YT	919	12,764	28,126	59,079

Canadian Dividends Not Best For All Situations

Sometimes the dividend gross-up can increase net income enough to cause a loss or reduction of other government benefits, such as GIS, GST/HST credit, Pharmacare or other benefits.

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

Revised: September 20, 2024