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)Finanças

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).

Impostos e Taxas Dividendos e Proventos Investimento e Ativos

Dados de Entrada

Em tempo real

Actual Cash Dividend Received (CAD $)

CAD $

Seleção 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 $

Detalhamento do 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 $

Metodologia 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 Educacional

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

Esta calculadora destina-se a fins educacionais e informativos. Os resultados não constituem consultoria financeira ou jurídica vinculativa.

Perguntas Frequentes

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

Dados de Entrada

Detalhamento do Cálculo

Metodologia de Cálculo

Aviso Legal e Educacional

Perguntas Frequentes

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