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Quebec Dividend Tax Credit Rates 2026

Calculate the effective tax rate on eligible and non-eligible Canadian dividends in Quebec, including the Revenu Québec provincial dividend tax credit and the 16.5% federal abatement 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 17.64% at your income level in QC.

Effective Rate

17.64%

on dividend income

Total Net Tax

$1,764

after dividend tax credits

Total Dividend Tax Credit

$3,687

fed $2,073 + prov $1,615

Net After-Tax

$8,236

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$2,622
Less provincial dividend tax credit+$1,615
Total net tax on dividends$1,764
Net after-tax dividends$8,236
Effective tax rate on dividends17.64%

Quebec Dividend Tax Credit Rates & Examples

Quebec's 2026 provincial DTC for eligible dividends is 11.70% of the grossed-up amount. For a $10,000 eligible dividend (grossed up to $13,800), the Quebec DTC is approximately $1,615 and the federal DTC is $2,073. Quebec residents also benefit from the 16.5% federal abatement, which reduces basic federal tax and partially offsets Quebec's higher provincial rates. The dividend DTC is claimed on your Revenu Québec return, not your CRA return.

For non-eligible dividends, Quebec provides a provincial DTC of 3.42% of the grossed-up amount. A $10,000 non-eligible dividend (grossed up to $11,500) receives a Quebec DTC of approximately $394 and a federal DTC of $1,038. Quebec's non-eligible DTC rate is moderate — lower than the NWT but higher than provinces like PEI or Manitoba.

Because Quebec administers its own income tax, residents file both a federal return with CRA and a provincial return with Revenu Québec. The federal and provincial DTCs are claimed on their respective returns. Quebec's higher provincial rates (up to 25.75%) mean the effective rate on dividends is above the national average, but the federal abatement and Quebec's various refundable credits — including the solidarity tax credit — can reduce the overall burden for lower-income dividend recipients.

Frequently Asked Questions

What is Quebec's dividend tax credit rate for eligible dividends in 2026?
Quebec's provincial DTC for eligible dividends is 11.70% of the grossed-up amount. Quebec residents also benefit from the 16.5% federal abatement on basic federal tax. The combined federal and Quebec DTC makes eligible dividends moderately tax-efficient, though Quebec's higher provincial rates (up to 25.75%) mean the effective rate on dividends is higher than in low-tax provinces like Alberta or Saskatchewan.
How does Quebec's dividend tax credit differ from other provinces?
Quebec administers its own income tax through Revenu Québec, so the provincial DTC is claimed on your Quebec tax return — not your federal return. The federal DTC is claimed on your CRA return as usual. Quebec's provincial rates are among the highest in Canada, but the 16.5% federal abatement partially offsets this. The net result is that eligible dividends in Quebec are taxed at a combined effective rate that is moderate relative to the national average.
Are non-eligible dividends tax-efficient in Quebec?
Quebec's provincial DTC for non-eligible dividends is 3.42% of the grossed-up amount. Combined with the federal DTC of 9.0301%, non-eligible dividends in Quebec receive moderate credit relief. Owner-managers of Quebec CCPCs should model both salary and dividend scenarios to determine the most tax-efficient compensation mix.

Looking for a different province? Use the main Dividend Tax Credit Calculator to switch between all provinces and territories.

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