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Tax Comparison Investment Income 2021 - Dividends vs Interest TaxTips.ca
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Personal Tax -> Dividend tax credits ->
Tax Rates  -> Tax comparisons  ->  Tax Comparisons Dividends vs Interest -> 2021

2021 Tax Comparison of Canadian Dividends vs Interest

The tables on this page compare taxes payable by province/territory in 2021 for three different types of investment income:

  - Canadian eligible dividends

  - Canadian 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 July 22, 2021.  The total taxes payable include any alternative minimum tax, where applicable.

Taxes Payable on Eligible Dividends

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

The NT & NU refundable amounts are from their cost of living tax credits.

Actual
Eligible
Dividends
Taxable
Income
Total Federal + Provincial Income Taxes Payable (Refundable) in 2021
AB BC MB NB NL NS NT NU ON PE QC SK YT
$30,000 $41,400 $0 $0 $236 $0 $729 $0 $(680) $(828) $450 $0 $825 $0 $0
50,000 69,000 0 0 1,547 0 3,241 1,778 (942) (1,380) 600 114 1,940 0 0
60,000 82,800 1,254 1,242 4,056 1,458 6,051 4,352 405 (153) 2,054 2,433 3,926 1,393 1,325
80,000 110,400 4,756 4,591 10,169 5,050 12,523 10,251 3,872 3,314 5,712 7,740 9,740 4,912 4,768
100,000 138,000 8,399 7,581 15,749 8,032 18,406 15,620 6,858 7,185 9,125 12,434 16,322 7,897 7,755

Taxes Payable on Non-Eligible Dividends

Note:  Non-eligible dividends gross-up % is 15%, as it has been since 2019.

The BC refundable amount is the sales tax credit, while NT & NU refundable amounts are from their cost of living tax credits.

Actual
Non-eligible
Dividends
Taxable
Income
Total Federal + Provincial Income Taxes Payable (Refundable) in 2021
AB BC MB NB NL NS NT NU ON PE QC SK YT
$15,000 $17,250 $0 $(30) $577 0 0 0 $(378) $(345) $0 0 $25 $0 $105
30,000 34,500 761 494 2,398 1,117 964 1,344 (593) (690) 300 1,776 2,258 1,334 1,093
50,000 57,500 4,387 3,455 6,978 5,399 5,115 6,044 971 1,142 3,572 6,327 6,935 5,424 4,459
60,000 69,000 6,606 5,434 9,673 8,106 7,699 8,969 2,205 2,736 5,600 9,154 9,941 7,985 6,736
80,000 92,000 11,043 9,606 15,952 13,594 13,073 14,785 5,253 6,263 10,075 15,182 16,094 13,108 11,290
100,000 115,000 16,412 15,465 23,345 20,332 19,473 21,684 10,249 11,273 16,896 22,172 23,964 19,164 17,099

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

The NT & NU refundable amounts are from their cost of living tax credits.

Interest
Income
Taxable
Income
Total Federal + Provincial Income Taxes Payable (Refundable) in 2021
AB BC MB NB NL NS NT NU ON PE QC SK YT
$15,000 $15,000 $179 $104 $603 $179 $179 $188 $(171) $(121) $179 $270 $149 $179 $255
30,000 30,000 3,492 3,211 4,596 3,937 4,209 4,108 2,762 2,370 3,694 4,340 4,994 3,875 3,465
50,000 50,000 8,546 7,659 10,127 9,523 9,694 10,258 6,902 5,922 8,258 10,074 10.793 9,115 7,824
60,000 60,000 11,596 10,479 13,452 13,055 13,194 13,870 9,712 8,472 11,223 13,504 14,571 12,415 10,774
80,000 80,000 17,696 16,119 20,433 20,119 20,245 21,383 15,472 13,672 17,312 20,829 22,194 19,015 16,674
100,000 100,000 23,904 22,360 28,120 27,501 27,612 28,982 21,804 19,410 24,204 28,380 30,299 25,723 22,719

Notes re all three tables:

bullet Ontario - includes Ontario Health Premium.
bullet QC includes contribution to the health services fund and prescription drug insurance plan premiums.
bullet 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.

TaxTips.ca Resources

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 23, 2021

 

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