2023 Tax Comparison of Canadian Dividends vs Interest

The tables on this page compare taxes payable by province/territory in 2023 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
	*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 June 8, 2023. 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.

TaxTips.ca 2023 Taxes on Eligible Dividends
Actual	$20,000	$70,000	$120,000	$200,000
Taxable	27,600	96,600	165,600	276,000
AB	0	2,999	12,145	31,701
BC	0	2,971	10,632	26,019
MB	0	6,360	20,584	44,307
NB	0	3,470	11,241	28,122
NL	0	8,283	22,966	50,285
NS	0	7,478	21,766	48,329
NT	(507)	2,271	9,986	23,461
NU	(552)	1,713	10,933	31,022
ON	300	3,915	13,705	37,910
PE	0	5,086	17,137	37,154
QC	762	5,058	21,009	48,985
SK	0	3,320	11,165	28,374
YT	0	3,163	10,867	24,403

Taxes Payable on Non-Eligible Dividends

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.

TaxTips.ca 2023 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	8,243	21,055	48,373
BC	0	6,858	20,633	51,313
MB	684	11,384	29,254	62,295
NB	0	9,739	25,374	57,182
NL	0	9,838	25,367	56,807
NS	325	11,475	28,029	61,933
NT	(450)	3,107	14,215	39,021
NU	(460)	3,839	15,403	40,651
ON	180	7,143	22,336	54,912
PE	468	12,061	29,668	63,007
QC	310	12,053	30,744	66,346
SK	76	9,568	23,861	52,937
YT	358	8,407	22,106	50,586

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

TaxTips.ca 2023 Taxes on Other Income
Actual	$20,000	$70,000	$120,000	$200,000
Taxable	20,000	70,000	120,000	200,000
AB	750	14,065	30,045	61,439
BC	750	12,744	28,649	62,755
MB	1,261	15,752	34,985	70,852
NB	750	15,599	34,071	69,631
NL	750	16,008	34,720	70,346
NS	1,449	17,222	36,787	74,484
NT	539	11,959	28,081	60,580
NU	433	10,422	25,167	55,178
ON	1,024	13,553	31,105	67,758
PE	1,111	16,471	36,117	72,760
QC	1,117	17,084	37,327	76,486
SK	995	15,067	32,297	65,403
YT	1,070	13,118	28,850	60,221

Canadian Dividends Not Best For All Situations

Sometimes the dividend gross-up can increase net income enough to cause a loss or reduction of other government benefits, such as GIS, GST/HST credit, Pharmacare or other benefits.

Tax Tip: Interest and foreign dividends are not as tax-efficient as Canadian dividends!

Revised: September 20, 2024