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)Finanza

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).

Imposte e Tasse Dividendi e Cedole Investimenti e Attività

Parametri di Input

In tempo reale

Actual Cash Dividend Received (CAD $)

CAD $

Selezione rapida:

Dividend Classification Category

Your Marginal Income Tax Rate (%)35 %

15 %54 %

Risultato CalcolatoCanadian 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 $

Dettaglio del Calcolo

Taxable Grossed-Up

41,400 CAD $

Tax Credit Offset

6,210 CAD $

Net Tax Due

8,280 CAD $

Net Cash Kept

21,720 CAD $

Metodologia di Calcolo

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).

Disclaimer Legale e Informativo

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

Questo calcolatore è progettato solo a scopo educativo e informativo. I risultati non costituiscono una consulenza finanziaria o legale vincolante.

Domande Frequenti

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

Parametri di Input

Dettaglio del Calcolo

Metodologia di Calcolo

Disclaimer Legale e Informativo

Domande Frequenti

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