New Brunswick Dividend Tax Credit Rates 2026
Calculate the effective tax rate on eligible and non-eligible Canadian dividends in New Brunswick, including the federal and NB provincial dividend tax credit for 2026.
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 7.56% — significantly lower than equivalent salary income due to the dividend tax credit.
Effective Rate
7.56%
on dividend income
Total Net Tax
$756
after dividend tax credits
Total Dividend Tax Credit
$4,005
fed $2,073 + prov $1,932
Net After-Tax
$9,244
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 | $1,932 |
| Less provincial dividend tax credit | +$1,932 |
| Total net tax on dividends | $756 |
| Net after-tax dividends | $9,244 |
| Effective tax rate on dividends | 7.56% |
New Brunswick Dividend Tax Credit Rates & Examples
New Brunswick's 2026 provincial DTC for eligible dividends is 14.0% of the grossed-up amount — the highest provincial DTC rate in Canada. For a $10,000 eligible dividend (grossed up to $13,800), the NB DTC is $1,932 and the federal DTC is $2,073. This generous credit significantly offsets NB's provincial bracket rates (top rate 19.5%), making eligible dividends surprisingly tax-efficient in New Brunswick.
For non-eligible dividends, New Brunswick provides a provincial DTC of 2.75% of the grossed-up amount. A $10,000 non-eligible dividend (grossed up to $11,500) receives a NB DTC of approximately $316 and a federal DTC of $1,038. NB's non-eligible DTC of 2.75% is significantly more generous than Manitoba (0.7835%) or Nova Scotia (1.50%), making it more favourable for CCPC owners receiving non-eligible dividends.
New Brunswick's combination of the highest eligible DTC rate in Canada (14.0%) and a retained non-eligible DTC makes it one of the most dividend-friendly provinces, despite its higher bracket rates. The 14.0% provincial DTC on eligible dividends means that NB residents earning even moderate income can achieve effective rates on eligible dividends that are comparable to low-tax provinces like Alberta. For investors in non-registered accounts, this is a meaningful advantage that is often overlooked.
Frequently Asked Questions
What is New Brunswick's dividend tax credit rate for eligible dividends in 2026?
How are non-eligible dividends taxed in New Brunswick?
How does NB's high eligible DTC rate compare nationally?
Looking for a different province? Use the main Dividend Tax Credit Calculator to switch between all provinces and territories.
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