Northwest Territories Dividend Tax Credit Rates 2026
Calculate the effective tax rate on eligible and non-eligible Canadian dividends in the Northwest Territories, including the federal and NWT territorial 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 3.56% — significantly lower than equivalent salary income due to the dividend tax credit.
Effective Rate
3.56%
on dividend income
Total Net Tax
$356
after dividend tax credits
Total Dividend Tax Credit
$3,660
fed $2,073 + prov $1,587
Net After-Tax
$9,644
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 | $1,187 |
| Less provincial dividend tax credit | +$1,587 |
| Total net tax on dividends | $356 |
| Net after-tax dividends | $9,644 |
| Effective tax rate on dividends | 3.56% |
Northwest Territories Dividend Tax Credit Rates & Examples
The Northwest Territories' 2026 territorial DTC for eligible dividends is 11.5% of the grossed-up amount — one of the most generous rates in Canada. For a $10,000 eligible dividend (grossed up to $13,800), the NWT DTC is $1,587 and the federal DTC is $2,073. With the NWT's low territorial rates (top rate 14.05%), the effective rate on eligible dividends is very low — among the most favourable in the country.
For non-eligible dividends, the NWT provides a territorial DTC of 6.0% of the grossed-up amount — the highest non-eligible DTC rate in Canada. A $10,000 non-eligible dividend (grossed up to $11,500) receives an NWT DTC of $690 and a federal DTC of $1,038. This generous non-eligible DTC makes the NWT uniquely favourable for CCPC owner-managers paying non-eligible dividends, as the effective rate is substantially lower than in any province.
The NWT's combination of low territorial rates, generous DTC rates for both dividend types, a high basic personal amount ($16,925), and no territorial sales tax makes it arguably the most dividend-friendly jurisdiction in Canada. Investors and business owners in the NWT benefit from an effective tax rate on dividend income that is substantially below the national average, whether receiving eligible dividends from public corporations or non-eligible dividends from a private company.
Frequently Asked Questions
What is the NWT's dividend tax credit rate for eligible dividends in 2026?
How are non-eligible dividends taxed in the NWT?
Is the NWT a good jurisdiction for dividend income?
Looking for a different province? Use the main Dividend Tax Credit Calculator to switch between all provinces and territories.
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