Dividend Tax Credit Calculator
Calculate the tax on eligible and non-eligible Canadian dividends with gross-up and tax credits.
2026 Tax YearData stays on your deviceUpdated Apr 1, 2026
$
Net Tax on Dividends
$687.27
Effective Tax Rate
6.87%
On actual dividend received
Grossed-Up Amount
$13,800.00
+38% gross-up
Federal Tax Credit
$2,072.73
Provincial Tax Credit
$1,380.00
Total Dividend Tax Credits
$3,452.73
Offsets tax on grossed-up amount
Frequently Asked Questions
What is the dividend gross-up?
Canadian dividends are "grossed up" to approximate the corporation pre-tax income. Eligible dividends are grossed up by 38%, non-eligible by 15%. You then receive a tax credit to offset the double taxation.
Eligible vs non-eligible dividends?
Eligible dividends come from large corporations that pay tax at the general corporate rate. Non-eligible dividends come from small businesses using the small business deduction. Eligible dividends get a larger gross-up and credit.
Can dividend income be tax-free?
In some provinces, eligible dividends below ~$50,000-$60,000 (as sole income) can result in zero or near-zero tax due to the generous tax credits. This makes Canadian dividends very tax-efficient.
Official Data Sources
Ad Space
Related Calculators
People also use
Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.
Ad Space