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Tax Comparison Investment Income 2019 - Dividends vs Interest

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Personal Tax -> Dividend tax credits ->
Tax Rates  -> Tax comparisons  ->  Tax Comparisons Dividends vs Interest -> 2019

2019 Tax Comparison of Canadian Dividends vs Interest

The tables on this page compare taxes payable by province/territory in 2019 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 24, 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 2019
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$30,000 $41,400 $0 $0 $289 $0 $768 $0 $(680) $(828) $450 $0 $776 $0 $0
50,000 69,000 0 0 1,600 0 3,679 1,778 (942) (1,380) 600 246 1,967 0 0
60,000 82,800 1,568 1,554 4,554 1,806 7,152 4,701 734 176 2,377 2,913 4,175 1,730 1,651
80,000 110,400 4,798 4,775 10,476 5,180 13,502 10,380 4,029 3,506 5,852 8,001 10,129 5,058 4,931
100,000 138,000 7,787 7,765 16,055 8,162 19,512 15,750 7,016 7,455 9,534 12,694 16,689 8,043 7,918

Taxes Payable on Non-Eligible Dividends

Note:  Non-eligible dividends gross-up % is 15% in 2019.

Actual
Non-eligible
Dividends
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2019
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT
$15,000 $17,250 $0 $(30) $610 0 0 0 $(378) $(345) $0 0 $65 $0 $0
30,000 34,500 1,010 778 2,701 1,503 1,224 1,594 (344) (441) 549 1,888 1,954 1,025 891
50,000 57,500 4,725 3,851 7,369 5,923 5,691 6,382 1,309 1,538 3,803 6,348 6,414 4,829 4,007
60,000 69,000 6,944 5,830 10,065 8,630 8,475 9,307 2,543 3,132 5,796 9,085 9,258 7,199 6,097
80,000 92,000 11,380 10,084 16,450 14,160 14,162 15,123 5,740 6,683 10,339 14,934 15,161 11,939 10,276
100,000 115,000 16,902 16,193 23,995 21,050 20,814 22,174 10,889 11,876 17,310 21,867 22,861 17,763 15,915

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

Interest
Income
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2019
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$15,000 $15,000 $440 $365 $898 $440 $440 $449 $101 $140 $440 $662 $368 $440 $627
30,000 30,000 3,753 3,535 4,890 4,321 4,481 4,369 3,049 2,650 3,970 4,732 5,232 4,153 3,837
50,000 50,000 8,884 8,056 10,518 10,048 10,071 10,595 7,300 6,319 8,661 10,543 11,157 9,480 8,309
60,000 60,000 11,934 10,876 13,843 13,580 13,771 14,208 10,110 8,869 11,626 13,973 14,950 12,780 11,259
80,000 80,000 18,034 16,516 20,931 20,644 21,234 21,721 15,870 14,069 17,755 21,298 22,573 19,380 17,159
100,000 100,000 24,393 23,053 28,771 28,219 28,854 29,472 22,444 20,012 24,963 29,015 30,911 26,239 23,410

Notes re all three tables:
     - BC includes no MSP premiums payable for 2020 based on 2019 income, because MSP premiums are eliminated in 2020.
     - 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.

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 29, 2019

 

 

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