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Tax Comparison Seniors Investment Income 2013

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Personal Tax -> Dividend tax credits -> 
                          Tax Rates -> Tax Comparisons ->  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 at Dec 31, 2013.

The total income in each case includes:

bullet$6,000 of Old Age Security
bullet$6,000 of Canada Pension Plan retirement income
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 $76,433 $8,081 $7,523 $11,673 $9,232 $9,197 $11,861 $5,531 $6,399 $9,388 $10,902 $13,098 $9,076 $6,473
B. Other Income 66,000 66,000 13,852 13,545 15,937 15,517 15,097 16,507 11,892 10,604 13,654 16,228 18,050 14,995 13,365

Notes:
     - The $967 Clawback of OAS in Case A is included as taxes payable, and reduces taxable income
     - 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: August 19, 2014

 

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