Dividend Tax Credit Calculator 2026
Calculate the effective tax rate on eligible and non-eligible Canadian dividends after the gross-up and dividend tax credit (DTC) mechanism.
Your Information
Employment, RRSP withdrawals, etc. (before adding dividends)
From Canadian public corporations (T5 box 24)
From CCPCs and private companies (T5 box 10)
Your effective tax rate on dividends is 6.39% — significantly lower than equivalent salary income due to the dividend tax credit.
Effective Rate
6.39%
on dividend income
Total Net Tax
$639
after dividend tax credits
Total Dividend Tax Credit
$3,453
fed $2,073 + prov $1,380
Net After-Tax
$9,361
dividends kept after tax
Dividend Tax Breakdown
| Eligible dividends received | $10,000 |
| Grossed up ×1.38 (38% gross-up) | $13,800 |
| Federal tax on grossed-up dividends | $2,829 |
| Less federal dividend tax credit | +$2,073 |
| Provincial tax on grossed-up dividends | $1,263 |
| Less provincial dividend tax credit | +$1,380 |
| Total net tax on dividends | $639 |
| Net after-tax dividends | $9,361 |
| Effective tax rate on dividends | 6.39% |
Related Calculators
Income Tax Calculator
Calculate your full tax bill including eligible and non-eligible dividend income.
Capital Gains Tax Calculator
Compare the tax treatment of capital gains vs. dividends from investments.
RRSP vs TFSA Calculator
See whether to hold dividend investments inside an RRSP or TFSA.
RRSP Withdrawal Tax Calculator
Calculate withholding tax and net tax on RRSP withdrawals.