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Tax Comparison Seniors Investment Income 2013

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Personal Tax -> Dividend tax credits -> Tax comparison for seniors with investment income -> 2013

Seniors Tax Comparison of Canadian Dividends vs Other Investment Income 2013

The table on this page compares taxes payable by province in 2013 for two different types of income

bulletCanadian dividends eligible for the enhanced dividend tax credit, and
bulletother income.

The calculations assume that the income is received by a single senior. The tax rates used are as known on June 5, 2013

The total income in each case includes:

bullet $6,553 of Old Age Security - the maximum for 2013
bullet $6,416 of Canada Pension Plan retirement income - the average for 2013
bullet $24,000 of pension income eligible for the pension tax credit
bullet plus either
  1. $30,000 of Canadian dividends eligible for the enhanced dividend tax credit, or
  2. $30,000 of other income, which could be interest, foreign dividends, pension income, or other income with no special tax treatment.

 
Income
Type
Total
Income
Taxable
Income

Total Federal + Provincial Income Taxes Payable in 2013

AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

A. Cdn Eligible Dividends $66,000 $77,256 $8,509 $7,955 $12,161 $9,688 $9,651 $12,344 $5,876 $6,807 $9,808 $11,384 $13,572 $9,528 $6,818
B. Other Income 66,000 66,000 14,198 13,854 16,296 15,882 15,453 16,904 12,219 10,913 13,978 16,625 18,300 15,356 13,704

Notes:
     - Clawback of OAS ($1,112) is included as taxes payable - the clawback only occurs in the Canadian eligible dividends case
     - BC includes MSP premiums payable for 2014 based on 2013 income
     - Ontario - includes Ontario Health Premium
     - QC includes health contribution, contribution to the health services fund, and prescription drug insurance plan premiums

Although the higher taxable income with Canadian eligible dividends causes a clawback of the OAS and a higher clawback of the age credit, the taxes payable are still significantly lower.

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.

See also Tax Comparisons by Province and Territory, which compare different levels of employment income for people who are not seniors.

 

Revised: June 05, 2013

 

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