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Tax Comparison Investment Income 2018 - Dividends vs Interest

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Personal Tax -> Dividend tax credits ->
Tax Rates  -> Tax comparisons  -> Tax Comparisons Dividends vs Interest -> 2018

2018 Tax Comparison of Canadian Dividends vs Interest

The tables on this page compare taxes payable by province/territory in 2018 for three different types of investment income:

bulletCanadian dividends eligible for the enhanced dividend tax credit,
bulletnon-eligible Canadian dividends, and 
bullet other investment income such as foreign dividends and interest.

The calculations assume that the income is earned by a single person, and that there is no other type of income included in taxable income.  The tax rates used are as known on July 22, 2019.  The total taxes payable include any alternative minimum tax, where applicable.

Taxes Payable on Dividends Eligible for the Enhanced Dividend Tax Credit

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

Actual
Eligible
Dividends
Taxable
Income
Total Federal + Provincial Income Taxes Payable (Refundable) in 2018
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$30,000 $41,400 $0 $390 $332 $0 $822 $0 $(680) $(828) $450 $0 $792 $0 $0
50,000 69,000 0 450 1,652 0 3,733 1,778 (942) (1,200) 600 246 2,003 0 0
60,000 82,800 1,588 2,024 4,690 1,813 7,228 4,707 748 490 2,393 2,919 4,243 1,741 1,666
80,000 110,400 4,777 5,207 10,556 5,122 13,514 10,321 3,992 3,944 5,802 7,943 10,265 5,013 4,898
100,000 138,000 7,767 8,197 16,135 8,105 19,559 15,691 6,978 7,893 9,690 12,636 16,804 7,997 7,885

Taxes Payable on Non-Eligible Dividends

Note:  Non-eligible dividends gross-up % is 16% in 2018.

Actual
Non-eligible
Dividends
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2018
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT
$15,000 $17,400 $0 $(27) $655 0 0 0 $(380) $(348) $0 0 $96 $0 $0
30,000 34,800 837 850 2,530 1,294 1,005 1,323 (597) (696) 300 1,616 1,574 807 685
50,000 58,000 4,393 3,879 7,044 5,564 5,372 5,918 875 1,170 3,454 5,882 5,795 4,463 3,679
60,000 69,600 6,517 5,746 9,683 8,166 8,062 8,741 2,010 2,836 5,348 8,524 8,491 6,741 5,676
80,000 92,800 10,765 9,888 15,967 13,533 13,589 14,332 5,158 6,328 9,915 14,154 14,169 11,297 9,668
100,000 116,000 16,265 16,070 23,503 20,385 20,224 21,338 10,278 11,457 16,874 21,038 21,752 17,105 15,346

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

Interest
Income
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2018
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$15,000 $15,000 $479 $404 $963 $479 $479 $488 $159 $246 $479 $701 $403 $479 $683
30,000 30,000 3,837 3,828 4,955 4,407 4,534 4,408 3,107 2,796 4,021 4,771 5,318 4,192 3,893
50,000 50,000 9,024 8,642 10,656 10,211 10,220 10,691 7,439 6,549 8,806 10,638 11,326 9,575 8,448
60,000 60,000 12,074 11,462 13,981 13,743 13,920 14,303 10,249 9,099 11,771 14,068 15,128 12,875 11,398
80,000 80,000 18,174 17,120 21,152 20,807 21,400 21,816 16,009 14,599 17,930 21,393 22,752 19,475 17,298
100,000 100,000 24,647 23,852 29,104 28,528 29,132 29,680 22,762 20,695 25,377 29,223 31,242 26,448 23,700

Notes re all three tables:
     - BC includes MSP premiums payable for 2019 based on 2018 income.
     - Ontario - includes Ontario Health Premium.
     - QC includes contribution to the health services fund and prescription drug insurance plan premiums.
     - QC taxes are net of tax credit for person living alone.

To see the tax results for your own income situation, and how it would change if the type of investment income changes, use our Detailed Canadian Income Tax and RRSP Savings Calculators, or our very simple Investment Income Tax Calculator.  However, the Investment Income Tax Calculator does not include BC MSP in the total taxes, because MSP is not actually part of the income tax system.  In the detailed Canadian Income Tax and RRSP Savings Calculator, the BC MSP is shown at the bottom of the calculator, but not included in the total taxes payable.

See also:

Tax Comparison of Investment Income for Seniors

Tax Comparisons of Taxes Payable on Employment Income by Province and Territory

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

Revised: July 25, 2019

 

 

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