Tax Comparison of Canadian Dividends vs Other Income for Seniors
The tables on this page compare taxes payable by province in
2010 and 2011 for two different types of income - Canadian dividends eligible for the
enhanced dividend tax credit, and other income. The
calculations assume that the income is received by a single senior. The tax
rates used are as known on April 1, 2011. The total income in each case
includes:
$6,000 of Old Age Security
$6,000 of Canada Pension Plan retirement income
$24,000 of pension income eligible for the pension
tax credit
plus either
$30,000 of Canadian dividends eligible for the
enhanced dividend tax credit, or
$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 2010
AB
BC
MB
NB
NL
NS
NT
NU
ON
PE
QC
SK
YT
A. Cdn Eligible
Dividends
$66,000
$77,330
$7,994
$7,119
$10,390
$8,837
$10,058
$11,797
$5,509
$6,169
$9,481
$10,783
$13,246
$9,192
$7,247
B. Other Income
66,000
66,000
14,367
13,836
16,406
15,757
15,763
16,920
12,432
11,131
14,186
16,616
18,433
15,650
13,917
Notes:
- Clawback of OAS is included as taxes payable
- BC includes MSP premiums payable for 2011 based
on 2010 income
- Ontario
- includes Ontario Health Premium
- QC includes health contribution, contribution to the
health services fund, and prescription drug insurance plan premiums
Income
Type
Total
Income
Taxable
Income
Total Federal +
Provincial Income Taxes Payable in 2011
AB
BC
MB
NB
NL
NS
NT
NU
ON
PE
QC
SK
YT
A. Cdn Eligible
Dividends
$66,000
$76,705
$8,343
$7,602
$10,718
$8,924
$9,546
$12,110
$6,043
$6,609
$9,744
$11,111
$13,492
$9,394
$6,731
B. Other Income
66,000
66,000
14,256
13,780
16,320
15,462
15,541
16,834
12,313
11,014
14,063
16,530
18,370
15,420
13,795
Notes:
- Clawback of OAS is included as taxes payable
- BC includes MSP premiums payable for 2012 based
on 2011 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 more clawback of the OAS and 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.
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