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Tax Comparison Seniors Investment Income 2012/2011 TaxTips.ca
Canadian Tax and
Financial Information

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Personal Tax   ->   Dividend tax credits -> 
                          Tax Rates   ->   Tax Comparisons   ->  Tax comparison for seniors with investment income -> 2012 and 2011

Seniors Tax Comparison of Canadian Dividends vs Other Investment Income 2012 and 2011

The tables on this page compare taxes payable by province in 2012 and 2011 for two different types of income:

bulletCanadian eligible dividends, and
bulletother income, such as interest and foreign dividends.

The calculations assume that the income is received by a single senior. The tax rates used are as known on November 10, 2012.

The total income in each case includes:

bullet $6,000 of Old Age Security
bullet $6,000 of Canada Pension Plan retirement income
bullet $24,000 of pension income eligible for the pension tax credit
bullet plus either
  1. $30,000 of Canadian eligible dividends, or
  2. $30,000 of other income, which could be interest, foreign dividends, pension income, or other income with no special tax treatment.
Income
Type
Total
Income
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2012
AB BC MB NB NL NS NT NU ON PE QC SK YT
A. Cdn Eligible Dividends $66,000 $76,224 $8,380 $7,745 $11,949 $8,939 $9,526 $12,112 $5,817 $6,715 $9,694 $11,153 $13,412 $9,386 $6,759
B. Other Income 66,000 66,000 14,031 13,600 16,092 15,233 15,283 16,635 12,070 10,778 13,821 16,356 18,240 15,174 13,547

Notes:

bullet Clawback of OAS ($1,176) is included as taxes payable - the clawback only occurs in the Canadian eligible dividends case
bullet BC includes MSP premiums payable for 2013 based on 2012 income
bullet Ontario - includes Ontario Health Premium
bullet QC includes health contribution, contribution to the health services fund, and prescription drug insurance plan premiums

 

Income
Type
Total
Income
Taxable
Income
Total Federal + Provincial Income Taxes Payable in 2011
AB BC MB NB NL NS NT NU ON PE QC SK YT
A. Cdn Eligible Dividends $66,000 $76,705 $8,343 $7,602 $10,691 $8,924 $9,545 $12,085 $5,789 $6,609 $9,743 $11,111 $13,470 $9,394 $6,731
B. Other Income 66,000 66,000 14,256 13,780 16,293 15,462 15,540 16,809 12,313 11,014 14,063 16,530 18,408 15,420 13,795

Notes:

bullet Clawback of OAS ($1,595) is included as taxes payable - the clawback only occurs in the Canadian eligible dividends case
bullet BC includes MSP premiums payable for 2012 based on 2011 income
bulletOntario - includes Ontario Health Premium
bulletQC includes health contribution, contribution to the health services fund, and prescription drug insurance plan premiums

Although the higher taxable income with Canadian eligible dividends causes a clawback of the OAS and a higher clawback of the age credit, the taxes payable are still significantly lower.

To see the tax results for your own income situation, and how it would change if the type of investment income changes, use our Income Tax Planning Calculators.

See also Tax Comparisons by Province and Territory, which compares different levels of employment income for people who are not seniors.

Revised: April 27, 2021

 

 

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