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Saskatchewan Dividend Tax Credit Rates 2026

Calculate the effective tax rate on eligible and non-eligible Canadian dividends in Saskatchewan, including the federal and Saskatchewan 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 9.63% — significantly lower than equivalent salary income due to the dividend tax credit.

Effective Rate

9.63%

on dividend income

Total Net Tax

$963

after dividend tax credits

Total Dividend Tax Credit

$3,591

fed $2,073 + prov $1,518

Net After-Tax

$9,037

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$1,725
Less provincial dividend tax credit+$1,518
Total net tax on dividends$963
Net after-tax dividends$9,037
Effective tax rate on dividends9.63%

Saskatchewan Dividend Tax Credit Rates & Examples

Saskatchewan's 2026 provincial DTC for eligible dividends is 11.0% of the grossed-up amount — one of the most generous in Canada. For a $10,000 eligible dividend (grossed up to $13,800), the SK DTC is $1,518 and the federal DTC is $2,073. Combined, these credits make eligible dividends very tax-efficient in Saskatchewan. With a combined top marginal rate of approximately 47.5%, the effective rate on eligible dividends at the top bracket is approximately 29–30%.

For non-eligible dividends, Saskatchewan provides a provincial DTC of 2.519% of the grossed-up amount. A $10,000 non-eligible dividend (grossed up to $11,500) receives a SK DTC of approximately $290 and a federal DTC of $1,038. Saskatchewan's non-eligible DTC of 2.519% is significantly more generous than Manitoba (0.7835%) or Nova Scotia (1.50%), making it a more favourable province for CCPC owner-managers who rely on non-eligible dividend income.

Saskatchewan's combination of a generous eligible DTC rate (11.0%), retention of the non-eligible DTC, a high basic personal amount ($18,014), low provincial rates (top rate 14.5%), and no surtax or health premium makes it one of the most dividend-friendly provinces in Canada. For retirees and investors with significant non-registered holdings, Saskatchewan's tax treatment of Canadian dividends represents a meaningful financial advantage.

Frequently Asked Questions

What is Saskatchewan's dividend tax credit rate for eligible dividends in 2026?
Saskatchewan's provincial DTC for eligible dividends is 11.0% of the grossed-up amount. Combined with the federal DTC of 15.0198%, Saskatchewan residents receive one of the more generous total dividend tax credits, making eligible dividends very tax-efficient. Saskatchewan's combined top marginal rate of ~47.5% means the effective rate on eligible dividends is among the lowest in Canada.
How are non-eligible dividends taxed in Saskatchewan?
Non-eligible dividends in Saskatchewan are grossed up by 15% and receive a provincial DTC of 2.519% of the grossed-up amount, plus the federal DTC of 9.0301%. Saskatchewan's 2.519% rate is significantly more generous than Manitoba's 0.7835% or Nova Scotia's 1.50%, making SK more favourable for CCPC owner-managers paying non-eligible dividends.
Is Saskatchewan a good province for holding dividend investments?
Yes. Saskatchewan's combination of low provincial tax rates (top rate 14.5%), a generous basic personal amount ($18,014), generous DTC rates, and no surtax or health premium makes it one of the most tax-efficient provinces for dividend income in non-registered accounts. Eligible dividends are taxed at an effective rate well below equivalent employment or interest income.

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

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