Why does Canada use a dividend gross-up and tax credit system?

The system prevents double taxation by integrating corporate and personal taxes so total tax paid equals ordinary income tax rates.

What is the federal Dividend Tax Credit percentage for eligible dividends?

The federal DTC is 15.02% of the grossed-up dividend amount (or ~20.73% of the actual cash dividend received).

CanadáCanadian Dividend Tax Credit (Eligible vs Non-Eligible)Finanzas

Canada Dividend Tax Credit (Eligible 138% vs. Non-Eligible 115% Gross-Up) Calculator

Calculate Canadian personal tax on dividend income: Eligible dividends from Canadian public corporations (138% gross-up + 15.02% federal DTC) versus Non-Eligible small business dividends (115% gross-up + 9.03% federal DTC).

Impuestos y Tasas Dividendos y Pagos Inversión y Activos

Datos y Parámetros

En tiempo real

Actual Cash Dividend Received (CAD $)

CAD $

Selección rápida:

Dividend Classification Category

Your Marginal Income Tax Rate (%)35 %

15 %54 %

Resultado CalculadoCanadian Dividend Tax Credit (Eligible vs Non-Eligible)

Net Tax Payable on Dividends (After Dividend Tax Credit)

8,280CAD $

Net Cash Dividend Income Retained in Hand

21,720 CAD $

Federal Dividend Tax Credit (DTC) Saved

6,210 CAD $

Desglose Detallado del Cálculo

Taxable Grossed-Up

41,400 CAD $

Tax Credit Offset

6,210 CAD $

Net Tax Due

8,280 CAD $

Net Cash Kept

21,720 CAD $

Metodología de Cálculo

Taxable Grossed-Up Amount = Actual Dividend * (1.38 Eligible or 1.15 Non-Eligible). Federal DTC = Taxable Grossed-Up * (15.02% Eligible or 9.03% Non-Eligible).

Aviso Legal e Informativo

The dividend gross-up and tax credit system prevents double taxation on corporate profits distributed to Canadian resident individuals.

Esta calculadora es para fines educativos e informativos. Los resultados no constituyen asesoramiento financiero, fiscal o legal vinculante.

Preguntas Frecuentes

Eligible dividends come from corporations taxed at the general rate (138% gross-up with higher DTC), while non-eligible dividends come from small CCPCs (115% gross-up).

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Canadá

Canada Dividend Tax Credit (Eligible 138% vs. Non-Eligible 115% Gross-Up) Calculator

Datos y Parámetros

Desglose Detallado del Cálculo

Metodología de Cálculo

Aviso Legal e Informativo

Preguntas Frecuentes

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