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).

CanadaCanadian Dividend Tax Credit (Eligible vs Non-Eligible)Finance

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).

Impôts et Taxes Dividendes et Distributions Investissement et Actifs

Données du Simulateur

En temps réel

Actual Cash Dividend Received (CAD $)

CAD $

Sélection rapide :

Dividend Classification Category

Your Marginal Income Tax Rate (%)35 %

15 %54 %

Résultat CalculéCanadian 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 $

Détail du Calcul

Taxable Grossed-Up

41,400 CAD $

Tax Credit Offset

6,210 CAD $

Net Tax Due

8,280 CAD $

Net Cash Kept

21,720 CAD $

Méthodologie de Calcul

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).

Avertissement Légal et Pédagogique

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

Ce simulateur est conçu à des fins éducatives et informatives. Les résultats ne constituent pas un conseil financier, fiscal ou juridique contraignant.

Foire Aux Questions

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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Canada

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

Données du Simulateur

Détail du Calcul

Méthodologie de Calcul

Avertissement Légal et Pédagogique

Foire Aux Questions

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