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2022 Tax Comparison Investment Income - Dividends vs Interest TaxTips.ca
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Home  ->  Personal Tax -> Dividend tax credits ->

Tax Rates  -> Tax comparisons  ->  Tax Comparisons Dividends vs Interest -> 2022

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 eligible dividends

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:

bulletthe income is earned by a single person, and
bulletthere is no other type of income included in taxable income.

Notes:

bulletThe Climate Action Incentive (CAI) is not included.
bullet ON provincial tax includes Ontario Health Premium.
bullet QC total tax is net of the refundable federal tax abatement.
bullet 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

 

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