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Yukon Dividend Tax Credit Rates 2026

Calculate the effective tax rate on eligible and non-eligible Canadian dividends in the Yukon, including the federal and Yukon 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 3.40% — significantly lower than equivalent salary income due to the dividend tax credit.

Effective Rate

3.40%

on dividend income

Total Net Tax

$340

after dividend tax credits

Total Dividend Tax Credit

$3,731

fed $2,073 + prov $1,659

Net After-Tax

$9,660

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$1,242
Less provincial dividend tax credit+$1,659
Total net tax on dividends$340
Net after-tax dividends$9,660
Effective tax rate on dividends3.40%

Yukon Dividend Tax Credit Rates & Examples

Yukon's 2026 territorial DTC for eligible dividends is 12.02% 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 Yukon DTC is $1,659 and the federal DTC is $2,073. With Yukon's low top territorial rate of 12.80%, the effective rate on eligible dividends is very favourable.

For non-eligible dividends, Yukon provides a territorial DTC of 0.67% of the grossed-up amount. A $10,000 non-eligible dividend (grossed up to $11,500) receives a Yukon DTC of approximately $77 and a federal DTC of $1,038. The effective rate on non-eligible dividends in the Yukon is moderate — lower than in high-rate provinces but not as advantaged as in the NWT, which has the highest non-eligible DTC in Canada.

Yukon's tax structure mirrors the federal bracket thresholds, which simplifies planning for dividend income. The combination of a generous 12.0% eligible DTC, low territorial rates, a basic personal amount of $16,452 matching the federal BPA, and no territorial sales tax makes Yukon one of the more tax-efficient jurisdictions for Canadian dividend income in non-registered accounts. For investors comparing territories, Yukon ranks second (behind the NWT) for non-eligible dividends and is among the top three for eligible dividends.

Frequently Asked Questions

What is Yukon's dividend tax credit rate for eligible dividends in 2026?
Yukon's territorial DTC for eligible dividends is 12.02% of the grossed-up amount — one of the more generous rates in Canada. Combined with the federal DTC of 15.0198%, Yukon residents receive a substantial total credit that makes eligible dividends very tax-efficient. Yukon's low top rate of 12.80% further enhances the preferential treatment.
How does Yukon compare to other territories for dividend tax efficiency?
Yukon offers the second-most favourable dividend tax treatment among the territories, behind only the NWT for non-eligible dividends. With a combined top marginal rate of approximately 45.8%, a generous eligible DTC of 12.0%, and the federal abatement not applying (unlike Quebec), Yukon residents enjoy low effective rates on both eligible and non-eligible dividend income.
Are non-eligible dividends taxed favourably in the Yukon?
Non-eligible dividends in Yukon receive a territorial DTC of 0.67% of the grossed-up amount, plus the federal DTC of 9.0301%. The effective rate is higher than on eligible dividends but still below the rate on equivalent employment or interest income. Yukon's low territorial rates keep the overall effective rate on non-eligible dividends competitive nationally.

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

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