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2022 Tax Comparison of Canadian Dividends vs Interest
The tables on this page compare taxes payable by province/territory in 2022 for three different types of investment income:
Canadian non-eligible Canadian dividends, and
other investment income such as foreign dividends and interest.
These tax comparisons have been revised to reflect indexation of Alberta's personal income tax system for 2022.
The calculations assume that:
 | the income is earned by a single person, and |
| there is no other type of income included in taxable income. |
Notes:
| The Climate Action Incentive (CAI) is not included. |
| ON provincial tax includes Ontario Health Premium. |
| QC total tax is net of the refundable federal tax abatement. |
| QC provincial tax includes progressive health contribution and prescription drug premiums (for both spouses in married person case). |
The tax rates used are as known on September 18, 2022. The total taxes payable include any alternative minimum tax, where applicable.
Taxes Payable on Eligible Dividends
Revised to reflect indexation of Alberta's personal income tax system for 2022.
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.
| Taxes on Eligible Dividends | ||||
|---|---|---|---|---|
| Actual | $20,000 | $70,000 | $120,000 | $200,000 |
| Taxable | 27,600 | 96,600 | 165,600 | 276,000 |
| AB | 0 | 3,029 | 12,313 | 33,702 |
| BC | 0 | 3,003 | 10,485 | 28,750 |
| MB | 0 | 7,177 | 21,118 | 46,615 |
| NB | 0 | 3,461 | 10,904 | 32,208 |
| NL | 0 | 8,517 | 23,030 | 52,567 |
| NS | 0 | 7,468 | 21,425 | 49,823 |
| NT | (507) | 2,283 | 9,746 | 24,956 |
| NU | (552) | 1,725 | 11,192 | 33,015 |
| ON | 300 | 4,123 | 14,056 | 40,056 |
| PE | 0 | 5,223 | 16,943 | 38,810 |
| QC | 752 | 6,405 | 22,611 | 51,694 |
| SK | 0 | 3,324 | 11,221 | 30,205 |
| YT | 0 | 3,179 | 10,646 | 25,898 |
Taxes Payable on Non-Eligible Dividends
Revised to reflect indexation of Alberta's personal income tax system for 2022.
Note: Non-eligible dividends gross-up % is 15%, as it has been since 2019.
The NT & NU refundable amounts are from their cost of living tax credits.
| Taxes on Non-Eligible Dividends | ||||
|---|---|---|---|---|
| Actual | $20,000 | $70,000 | $120,000 | $200,000 |
| Taxable | 23,000 | 80,500 | 138,000 | 230,000 |
| AB | 0 | 8,627 | 21,862 | 50,165 |
| BC | 0 | 7,225 | 21,772 | 53,438 |
| MB | 1,208 | 12,462 | 30,681 | 64,394 |
| NB | 0 | 10,495 | 26,919 | 60,691 |
| NL | 0 | 10,315 | 26,224 | 58,732 |
| NS | 325 | 11,740 | 28,642 | 63,218 |
| NT | (450) | 3,371 | 15,169 | 40,820 |
| NU | (460) | 4,236 | 16,270 | 42,435 |
| ON | 180 | 7,567 | 23,600 | 56,849 |
| PE | 653 | 12,473 | 30,443 | 64,454 |
| QC | 464 | 13,226 | 32,755 | 68,886 |
| SK | 186 | 10,001 | 24,729 | 54,559 |
| YT | 396 | 8,793 | 22,960 | 52,319 |
Taxes Payable on Other Income
(foreign dividends, interest, etc.)
Revised to reflect indexation of Alberta's personal income tax system for 2022.
The NT & NU refundable amounts are from their cost of living tax credits.
| Taxes on Other Income | ||||
|---|---|---|---|---|
| Actual | $20,000 | $70,000 | $120,000 | $200,000 |
| Taxable | 20,000 | 70,000 | 120,000 | 200,000 |
| AB | 859 | 14,449 | 30,777 | 62,782 |
| BC | 840 | 13,111 | 29,616 | 64,454 |
| MB | 1,876 | 16,588 | 36,411 | 72,631 |
| NB | 942 | 16,269 | 35,522 | 72,581 |
| NL | 841 | 16,457 | 35,577 | 71,807 |
| NS | 1,539 | 17,487 | 37,400 | 75,450 |
| NT | 687 | 12,359 | 29,034 | 62,060 |
| NU | 566 | 10,819 | 26,034 | 56,643 |
| ON | 1,221 | 13,977 | 32,369 | 69,376 |
| PE | 1,348 | 16,883 | 36,891 | 73,887 |
| QC | 1,508 | 18,149 | 39,334 | 78,725 |
| SK | 1,196 | 15,500 | 33,078 | 66,705 |
| YT | 1,199 | 13,504 | 29,704 | 61,640 |
Tax Tip: Interest and foreign dividends are not as tax-efficient as Canadian dividends!
Revised: September 18, 2022