Dividend Tax Calculator for Canada
See the tax on eligible and non-eligible dividends in your province, using the 2026 gross-up and federal and provincial dividend tax credits. Last reviewed October 18, 2026.
What you keep after tax
Uses the CRA's 2026 federal and Ontario brackets and dividend tax credits. The basic personal amount and other credits, the alternative minimum tax and benefit clawbacks are not included. An estimate, not tax advice.
How dividends are taxed in Canada
A dividend from a Canadian corporation is grossed up (by 38% for eligible dividends, 15% for non-eligible), added to your income, and taxed at your brackets. You then subtract a federal and a provincial dividend tax credit, which offsets the tax the corporation already paid. This calculator finds the real difference in tax with and without the dividends, so large amounts that reach higher brackets are taxed accordingly.
What this calculator assumes
- Eligible dividends come mainly from public corporations; non-eligible dividends mainly from a private corporation's income taxed at the small-business rate. Your slips (T5 or T3) say which is which.
- Enter the cash dividends. The gross-up is applied here, so do not enter the larger taxable amounts from your slips.
- Rates are the CRA's 2026 federal and provincial brackets and dividend credits. Ontario's non-eligible credit and Quebec's change on January 1, 2027; those changes are not modelled.
- Not included: the basic personal amount and other non-refundable credits, the alternative minimum tax, clawbacks of benefits such as Old Age Security. At low incomes these matter, and the result is shown as an upper bound.
Frequently asked questions
How are eligible dividends taxed in Canada?
Eligible dividends are grossed up by 38%, added to your income, and reduced by a federal credit of 15.0198% of the grossed-up amount plus a provincial credit. The result is a much lower rate than the same amount of salary or interest.
What is the difference between eligible and non-eligible dividends?
Eligible dividends are paid out of income taxed at the general corporate rate, so they get bigger credits and a lower personal rate. Non-eligible dividends, mostly from private corporations' small-business income, are grossed up by 15% and get smaller credits.
Are dividends in a TFSA or RRSP taxed this way?
No. Dividends inside a TFSA are not taxed, and inside an RRSP they are taxed as ordinary income when you withdraw. This calculator is for dividends in a taxable account.
Do foreign dividends get the dividend tax credit?
No. Dividends from foreign companies are taxed as ordinary income, usually with a foreign tax credit for tax withheld abroad. Only dividends from taxable Canadian corporations qualify.
Related
Educational estimates, not tax, legal or investment advice. Talk to a licensed Canadian CPA or CFP before acting.