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2024 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 -> 2024

2024 Tax Comparison of Canadian Dividends vs Interest

Tax Comparison Calculation Information

Taxes Payable on Canadian Eligible Dividends

Taxes Payable on Canadian Non-Eligible Dividends

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

Tax Comparison Calculation Information

The calculations below of taxes payable assume that:

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

Notes:

bulletThe Canada Carbon Rebate 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 August 20, 2024.

Taxes Payable on Canadian Eligible Dividends

Due to the alternative minimum tax changes for 2024, there is no alternative minimum tax in any of the cases below, resulting in much less tax than in 2023. 

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
2024 Taxes on Eligible Dividends
Actual $20,000 $70,000 $120,000 $200,000
Taxable 27,600 96,600 165,600 276,000
AB 0 0 7,881 30,141
BC 0 0 6,609 23,742
MB 0 1,968 14,905 41,891
NB 0 0 6,609 26,398
NL 0 4,607 17,999 48,505
NS 0 3,998 17,122 47,144
NT (507) (942) 5,667 22,276
NU (552) (1,500) 6,409 29,441
ON 300 750 8,710 36,244
PE 0 1,396 13,259 38,976
QC 704 2,903 17,754 47,397
SK 0 0 6,609 26,920
YT 0 0 6,609 23,218

Taxes Payable on Canadian 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.

There is no alternative minimum tax at any level of non-eligible dividends in 2024 when dividends are the only income, because regular tax is always higher than the minimum tax.

TaxTips.ca
2024 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 7,911 20,448 47,293
BC 0 6,523 19,648 49,888
MB 600 10,817 27,505 60,288
NB 0 9,337 24,607 55,866
NL 0 9,455 24,663 55,547
NS 325 11,231 27,510 61,155
NT (450) 2,863 13,424 37,835
NU (460) 3,490 14,683 39,478
ON 180 6,781 21,336 53,655
PE 343 11,617 28,929 62,463
QC 258 11,570 29,675 65,090
SK 0 8,857 22,636 50,939
YT 313 8,053 21,382 49,444

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

TaxTips.ca
2024 Taxes on Other Income
Actual $20,000 $70,000 $120,000 $200,000
Taxable 20,000 70,000 120,000 200,000
AB 644 13,733 29,438 60,382
BC 644 12,409 27,817 61,331
MB 1,071 15,226 33,236 68,844
NB 644 15,197 33,304 68,315
NL 644 15,625 34,016 69,260
NS 1,343 16,978 36,268 73,707
NT 387 11,608 27,290 59,395
NU 294 10,073 24,447 54,005
ON 840 13,191 30,104 66,501
PE 922 16,032 35,264 71,803
QC 844 16,601 36,362 75,230
SK 803 14,689 31,644 64,357
YT 919 12,764 28,126 59,079

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

 

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