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Tax Comparison Investment Income 2020 - Dividends vs Interest TaxTips.ca
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Personal Tax -> Dividend tax credits ->
Tax Rates  -> Tax comparisons  ->  Tax Comparisons Dividends vs Interest -> 2020

2020 Tax Comparison of Canadian Dividends vs Interest

The tables on this page compare taxes payable by province/territory in 2020 for three different types of investment income:

  - Canadian dividends eligible for the enhanced dividend tax credit,

  - non-eligible Canadian dividends, and 

  - 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 April 18, 2020.  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 2020
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$30,000 $41,400 $0 $0 $253 $0 $741 $0 $(680) $(828) $450 $0 $788 $0 $0
50,000 69,000 0 0 1,564 0 3,253 1,778 (942) (1,380) 600 163 1,957 0 0
60,000 82,800 1,371 1,358 4,238 1,595 6,204 4,489 531 (27) 2,176 2,618 4,023 1,523 1,449
80,000 110,400 4,676 4,651 10,267 5,091 12,579 10,291 3,922 3,364 5,756 7,830 9,906 4,959 4,820
100,000 138,000 7,665 7,641 15,846 8,073 18,470 15,661 6,909 7,276 9,257 12,524 16,488 7,943 7,807

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 2020
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT
$15,000 $17,250 $0 $(30) $588 0 0 0 $(378) $(345) $0 0 $33 $0 $0
30,000 34,500 836 589 2,490 1,288 1,043 1,420 (518) (615) 375 1,631 2,050 851 703
50,000 57,500 4,501 3,586 7,108 5,638 5,240 6,158 1,084 1,275 3,706 6,041 6,610 4,605 3,744
60,000 69,000 6,719 5,565 9,803 8,345 7,824 9,082 2,318 2,869 5,734 8,778 9,536 6,974 5,834
80,000 92,000 11,156 9,763 16,116 13,847 13,202 14,898 5,418 6,397 10,242 14,627 15,558 11,714 10,013
100,000 115,000 16,579 15,695 23,563 20,639 19,656 21,851 10,469 11,480 17,151 21,462 23,323 17,441 15,520

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

Interest
Income
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2020
AB BC MB NB NL

NS

NT NU ON PE QC

SK

YT

$15,000 $15,000 $266 $191 $701 $266 $266 $275 $(84) $(34) $266 $406 $222 $266 $439
30,000 30,000 3,579 3,317 4,693 4,107 4,299 4,195 2,858 2,463 3,786 4,476 5,058 3,979 3,649
50,000 50,000 8,659 7,790 10,257 9,763 9,820 10,371 7,036 6,055 8,392 10,236 10,905 9,255 8,047
60,000 60,000 11,709 10,610 13,582 13,295 13,320 13,983 9,846 8,605 11,357 13,666 14,689 12,555 10,997
80,000 80,000 17,809 16,250 20,597 20,359 20,374 21,496 15,606 13,805 17,459 20,991 22,313 19,155 16,897
100,000 100,000 24,071 22,590 28,339 27,808 27,796 29,149 22,023 19,617 24,459 28,601 30,508 25,917 23,014

Notes re all three tables:
     - 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: April 19, 2020

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