Seniors Tax Comparison: Canadian Dividends vs Other
Investment Income 2014
The table on this page compares taxes payable by province in
2014 for two different types of income:
The
calculations assume that the income is received by a single senior. The tax
rates used are as known on August 19, 2014.
The total income in each case
includes:
$6,000 of Old Age Security
$6,000 of Canada Pension Plan retirement income
$24,000 of pension income eligible for the pension
tax credit
plus either
$30,000 of Canadian eligible dividends, or
$30,000 of other income, which could be
interest, foreign dividends, pension income, or other income with
no special tax treatment, or
$50,000 of Canadian eligible dividends, or
$50,000 of other income
Income
Type
Total
Income
Taxable
Income
Total Federal +
Provincial Income Taxes Payable in 2014
AB
BC
MB
NB
NL
NS
NT
NU
ON
PE
QC
SK
YT
A. Cdn Eligible
Dividends
$66,000
$76,529
$7,939
$7,453
$11,531
$9,682
$10,195
$11,746
$5,400
$6,254
$7,848
$10,787
$13,572
$8,933
$6,342
B. Other Income
66,000
66,000
13,761
13,539
15,852
15,883
14,998
16,449
11,811
10,525
13,569
16,169
18,300
14,910
13,281
Additional
Tax (B-A)
$5,822
$6,086
$4,321
$6,201
$4,803
$4,703
$6,411
$4,271
$5,721
$5,382
$4,728
$5,977
$6,939
C. Cdn Eligible Dividends
86,000
99,989
13,264
13,139
19,145
15,949
16,792
19,011
11,139
12,569
14,527
17,546
20,728
14,686
12,081
D. Other
Income
86,000
83,839
22,027
21,577
25,332
25,039
23,779
25,845
20,038
18,304
22,093
25,571
27,496
23,654
21,590
Additional
Tax (D-C)
$8,763
$8,438
$6,187
$9,090
$6,987
$6,834
$8,899
$5,735
$7,566
$8,025
$6,768
$8,968
$9,509
Notes:
The clawback of OAS in Cases A ($871), C ($5,011) and
D ($2,161) reduces taxable income, and is included as taxes payable.
BC includes MSP premiums payable for 2015 based
on 2014 income.
NL dividends are assumed to be received evenly
throughout the year, so the taxes are lower than they will be in 2015.
Ontario
- includes Ontario Health Premium.
QC 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 Detailed
Income Tax and RRSP Savings Calculators , and our very simple Investment
Income Tax Calculator .
See also Tax Comparisons by Province and
Territory , which compare different levels of employment income for people
who are not seniors.
Revised: October 26, 2023
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