Ads keep this website free for you. TaxTips.ca does not research or endorse any product or service appearing in ads on this site. Before making a major financial decision you should consult a qualified professional.	NL Dividend Tax Credit	TaxTips.ca Canadian Tax and Financial Information
TaxTips.ca Home What's New		Links & Resources Site Map

Need an accounting, tax or financial advisor? Look in our Directory. Use above search box to easily find your topic! Stay Connected with TaxTips.ca!

Home -> 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 NL 2024 Budget reduced the small business corporate tax rate from 3% to 2.5% effective January 1, 2024. There was no mention in the budget of whether this would result in a reduction to the non-eligible dividend tax credit. We'll report back once a Bill is tabled for the tax change.

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 20, 2024

Facebook | Twitter | See What’s New, stay connected with TaxTips.ca by RSS or Email
The information on this site is not intended to be a substitute for professional advice. Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage.
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.