Atlantic Provinces -> Newfoundland & Labrador -> NL Dividend Tax Credit
Newfoundland & Labrador Dividend Tax Credits
NL Eligible Dividends
NL Income Tax Act, 2000 s. 20(1)(b)
The NL Income Tax Act defines the eligible dividend tax credit rate as a percentage of the taxable (grossed-up) dividend.
Bill 15, An Act to Amend the Income Tax Act, 2000 No. 2 increased the eligible dividend tax credit rate from 5.4% to 6.3%, effective January 1, 2022.
| NL Dividend Tax Credit Rate for Eligible Dividends | |||
| Year | Gross-up Rate |
% of Grossed-up Dividend |
% of Actual Dividend |
| 2022+ | 38% | 6.3% | 8.69% |
| 2014 Jul - 2021 Dec | 38% | 5.4% | 7.45% |
| 2013 - 2014 Jun | 38% | 11.0% | 15.18% |
See the marginal tax rates for NL for current marginal tax rates for eligible and non-eligible dividends and other income.
NL Dividend Tax Credit for Non-Eligible Dividends
NL Income Tax Act, 2000 s. 20(1)(a)
The NL Income Tax Act defines the non-eligible dividend tax credit rate as a percentage of the taxable (grossed-up) dividend.
Bill 15, An Act to Amend the Income Tax Act, 2000 No. 2 reduced the non-eligible dividend tax credit rate from 3.5% to 3.2%, effective January 1, 2022.
The current and past Newfoundland and Labrador rates for non-eligible dividends are shown in the following table.
| NL Dividend Tax Credit Rate for Non-Eligible Dividends | ||||
| Year | Gross-up Rate |
%of
Federal Gross-up |
% of Grossed-up Dividend |
% of Actual Dividend |
| 2022+ | 15% | 24.53% | 3.2% | 3.68% |
| 2019 - 2021 | 15% | 26.83% | 3.5% | 4.03% |
| 2018 | 16% | 25.38% | 3.5% | 4.06% |
| 2016 Jul - 2017 Dec | 17% | 24.09% | 3.5% | 4.10% |
| 2016 Jan-Jun | 17% | 28.22% | 4.1% | 4.80% |
| 2014 Jul-Dec & 2015 | 18% | 26.88% | 4.1% | 4.84% |
| 2014 Jan-Jun | 18% | 32.78% | 5% | 5.90% |
| 2013 | 25% | 25% | 5% | 6.25% |
Revised: September 14, 2021