Dividend Tax Calculator

What $1 of eligible or non-eligible dividends, capital gains, interest or US dividends keeps after 2026 federal and provincial tax, on top of your other income.

Rules checked October 31, 2026

Short answer

An Ontario resident earning $60,000 who receives $10,000 of eligible Canadian dividends keeps about $9,361 after tax. The same amount as interest keeps $7,035, and as capital gains $8,518, because dividends get the dividend tax credit and only half of a gain is taxed.

Figures as of 2026-10-31.

Investment income after tax

Eligible dividends kept after tax$9,3616.39% effective tax on this income

Non-eligible Canadian dividends: $7,972; 20.28% tax
Capital gains: $8,518; 14.82% tax
Interest (GICs, savings): $7,035; 29.65% tax
US dividends (15% withheld): $7,035; 29.65% tax

Eligible dividends add $13,800 to net income (the grossed-up amount), which matters for OAS clawback and income-tested benefits.

Eligible dividends keep $9,361

Show the numbers

Kept after tax, by type of income
	Kept	Tax
Eligible Canadian dividends	$9,361	$639
Non-eligible Canadian dividends	$7,972	$2,028
Capital gains	$8,518	$1,483
Interest	$7,035	$2,965
US dividends	$7,035	$2,965

Assumptions & sources

Assumptions

Engine: HighDividendPayingStocks.com's 2026 tax model (reviewed 2026-10-31).
Non-registered account. In a TFSA there is no Canadian tax; US withholding still applies there.
Marginal tax on top of your other income; credits beyond the basic personal amount aren't modelled.

Sources

CRA — Line 40425: Federal dividend tax credit. Checked October 31, 2026.
CRA — 5000-D1 Federal Worksheet (2025): gross-up and dividend tax credit rates. Checked October 31, 2026.
CRA — 2025 provincial and territorial worksheets (5001-D to 5014-D): dividend tax credit rates. Checked October 31, 2026.
CRA — Tax rates and income brackets for individuals (current year). Checked October 31, 2026.
Canada–United States Tax Convention, consolidated text (Department of Finance Canada) — Canada–United States Tax Convention, consolidated text (Department of Finance Canada). Checked October 31, 2026.

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Worked example: $10,000 of eligible dividends in Ontario

Worked example: $10,000 of eligible dividends in Ontario: inputs, steps and result
Other income	$60,000
Dividends	$10,000
Grossed up (×1.38)	$13,800
Tax after credits	$639
Kept	$9,361

Open this example in the calculator →Computed 2026-10-31.

Mitey points down at the bars comparing dividends, gains and interest. — Same dollars, five different tax bills. Mitey points at the shortest bar.
Account placement matters as much as the investment: interest-heavy holdings often belong in an RRSP or TFSA, Canadian dividends in a taxable account.

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Frequently asked questions

How are Canadian dividends taxed?

Eligible dividends are grossed up by 38% and earn a federal dividend tax credit of 15.0198% of the grossed-up amount, plus a provincial credit. That makes them taxed less than interest at most incomes. Non-eligible dividends use a 15% gross-up and smaller credits.

Why can dividends affect OAS?

The grossed-up amount, not the cash received, counts in net income, so a large eligible dividend can push net income over the OAS recovery threshold even when little tax is owed.

Are US dividends taxed twice?

The US withholds 15% on dividends paid to Canadian residents in a non-registered account or TFSA under the tax treaty; Canada gives a foreign tax credit for it in a non-registered account. In an RRSP there is usually no US withholding.