Lowest eligible net tax
$162.87
British Columbia (#1)
Canada compare
🇨🇦2026 · CRA DTC · $10k vignette
Dividend Tax by Province
Rank all 13 provinces and territories by eligible dividend net tax. $10,000 cash dividends with $80,000 other taxable income (single, 2026). Lowest: British Columbia $162.87; highest: Newfoundland and Labrador $1,945.67. Ontario vs Alberta gap ≈ $376.74.
By Sammy S. · Founder · AuthorUpdated for 2026
$162.87
Lowest (British Columbia)
$1,945.67
Highest (Newfoundland and Labrador)
$638.97
Ontario eligible net
$1,015.71
Alberta eligible net
Highest eligible net tax
$1,945.67
Newfoundland and Labrador (#13)
Hub vignette
$10,000
Eligible cash + $80k other income
Key finding — Ontario vs Alberta vs Québec
On $10,000 cash dividends with $80,000 other taxable income (single, 2026), Ontario’s eligible dividend net tax is about $638.97 versus Alberta’s $1,015.71 (Ontario lower by $376.74). Québec models $1,638.88 — $999.91 above Ontario on the same cash dividend.
Key takeaways
- All 13 provinces and territories ranked by eligible dividend net tax on $10,000 cash dividends with $80,000 other taxable income (single, 2026).
- Lowest eligible net tax here: British Columbia ($162.87, 1.63%).
- Highest eligible net tax here: Newfoundland and Labrador ($1,945.67).
- British Columbia leads eligible rankings at this income; Alberta ($1,015.71) is not the lowest despite flat provincial rate marketing.
- Ontario vs Alberta eligible gap ≈ $376.74 on the vignette (Ontario lower).
- Ontario vs Québec eligible gap ≈ $999.91 (Ontario lower on this scenario).
- On this vignette, non-eligible net tax exceeds eligible in every province — e.g. British Columbia $1,979.14 vs $162.87.
- Federal gross-up 138% eligible / 115% non-eligible; federal DTC 15.0198% / 9.0301%.
- Provincial DTC percentages differ — they drive most of the spread at the same other income.
- CPP/EI are excluded; dividends are not pensionable employment income.
- Personalize any amount in the 2026 dividend tax calculator.
How Canadian dividend tax works
Canadian dividends in a non-registered account are grossed up, taxed at federal and provincial marginal rates, then reduced by dividend tax credits. Eligible dividends use a 38% gross-up; other-than-eligible use 15%.
This hub ranks 13 provinces and territories by incremental net tax on $10,000 eligible cash dividends when you already have $80,000 of other taxable income (single, 2026). Lowest here: British Columbia ($162.87). Highest: Newfoundland and Labrador ($1,945.67).
Eligible vs non-eligible columns
Eligible dividends from large Canadian corporations and CCPC general-rate pools receive higher DTCs. Non-eligible CCPC dividends use lower gross-up and credits — the hub shows both on the same cash amount so you can see the spread in each province.
Ranking order uses eligible net tax only; non-eligible figures are informational for the same vignette.
What this hub does not model
Foreign dividends, capital gains, return of capital, RRSP/ TFSA sheltering, detailed AMT, OAS clawback, and exact multi-slip T5 aggregation.
Use the dividend tax calculator to change dividend amount, other income, filing status, and province.
Worked examples (engine-aligned)
Ontario vs Alberta — eligible $10,000
$10,000 cash dividends with $80,000 other taxable income (single, 2026)
- Ontario net tax
- $638.97
- Alberta net tax
- $1,015.71
- Difference (AB − ON)
- $376.74
Ontario vs Québec — eligible
Same vignette; Québec includes provincial DTC + federal abatement model.
- Ontario
- $638.97
- Quebec
- $1,638.88
- QC − ON
- $999.91
British Columbia eligible vs non-eligible
$10,000 cash each type at $80,000 other income.
- Eligible net
- $162.87
- Non-eligible net
- $1,979.14
- Extra tax (non-eligible)
- $1,816.27
Eligible dividend tax ranking
Lowest eligible net tax first. $10,000 cash dividends with $80,000 other taxable income (single, 2026). Non-eligible net tax shown for the same cash dividend.
| Rank | Province / territory | Eligible net | Eligible eff. | Non-elig. net |
|---|---|---|---|---|
| #1 |  British Columbia | $162.87 | 1.63% | $1,979.14 |
| #2 |  Yukon | $339.51 | 3.40% | $2,276.99 |
| #3 |  Northwest Territories | $356.07 | 3.56% | $1,618.04 |
| #4 |  Ontario | $638.97 | 6.39% | $2,027.87 |
| #5 |  New Brunswick | $756.27 | 7.56% | $2,612.79 |
| #6 |  Nunavut | $961.88 | 9.62% | $1,823.88 |
| #7 |  Saskatchewan | $963.27 | 9.63% | $2,466.85 |
| #8 |  Alberta | $1,015.71 | 10.16% | $2,218.34 |
| #9 |  Manitoba | $1,411.77 | 14.12% | $2,695.19 |
| #10 |  Prince Edward Island | $1,598.07 | 15.98% | $3,078.54 |
| #11 |  Quebec | $1,638.88 | 16.39% | $2,893.09 |
| #12 |  Nova Scotia | $1,835.44 | 18.35% | $3,063.60 |
| #13 |  Newfoundland and Labrador | $1,945.67 | 19.46% | $2,646.44 |
Lowest eligible net tax
- #1 British Columbia$162.87
- #2 Yukon$339.51
- #3 Northwest Territories$356.07
- #4 Ontario$638.97
- #5 New Brunswick$756.27
Highest eligible net tax
- #13 Newfoundland and Labrador$1,945.67
- #12 Nova Scotia$1,835.44
- #11 Quebec$1,638.88
- #10 Prince Edward Island$1,598.07
- #9 Manitoba$1,411.77
Compare provinces
Compare any two provinces
Eligible dividend net tax on $10,000 cash with $80,000 other income (2026).
Eligible net tax by dividend amount
Same $80,000 other taxable income — eligible net tax varies by cash dividend amount.
| Province | $1,000 | $2,500 | $5,000 | $10,000 | $25,000 | $50,000 |
|---|---|---|---|---|---|---|
| British Columbia | $16.29 | $40.72 | $81.43 | $162.87 | $792.78 | $4,727.01 |
| Ontario | $63.90 | $159.74 | $319.48 | $638.97 | $2,226.13 | $8,430.64 |
| Alberta | $101.56 | $253.92 | $507.85 | $1,015.71 | $2,539.27 | $6,836.06 |
| Quebec | $163.89 | $409.72 | $819.43 | $1,638.88 | $4,388.20 | $11,971.16 |
| Newfoundland and Labrador | $188.80 | $471.98 | $943.93 | $1,945.67 | $5,046.57 | $11,972.27 |
How to use this ranking
Step 1
Scan eligible rankings
Sort provinces by net tax on $10,000 eligible dividends at $80,000 other income.
Step 2
Open a province profile
See provincial DTC rates, eligible vs non-eligible snapshot, and methodology links.
Step 3
Compare two provinces
Use Ontario vs Alberta, Ontario vs Québec, or BC vs Alberta pair pages.
Step 4
Check non-eligible column
CCPC dividends often come out as non-eligible — net tax is higher in every province here.
Step 5
Personalize
Run your cash dividend, other income, and province in the dividend tax calculator.
Common myths vs CRA rules
“Alberta always taxes dividends the least.”
Provincial DTC and bracket stacking matter. On $10,000 cash dividends with $80,000 other taxable income (single, 2026), Alberta eligible net tax ($1,015.71) exceeds Ontario ($638.97) and British Columbia in this hub.
“Eligible and non-eligible dividends are taxed the same.”
Non-eligible uses a 115% gross-up and lower DTCs. Every province in this hub shows materially higher net tax on non-eligible cash at the same other income.
“Dividend tax credits are refundable.”
Federal and provincial DTCs are non-refundable credits — they reduce tax to zero on each component but do not pay you back unused amounts.
“Gross-up is optional.”
CRA requires reporting taxable dividends at 138% (eligible) or 115% (other than eligible) of cash received on lines 12000/12010 before claiming DTCs.
“TFSA dividends belong in this ranking.”
TFSA investment income is generally not reported on the T1. This hub models non-registered Canadian dividends only.
“Quebec uses the same provincial DTC as Ontario.”
Québec eligible DTC is 11.7000% of grossed-up vs Ontario 10.0000%, plus the federal abatement in the Quebec return.
Glossary
- Eligible dividend
- Paid by Canadian public corps and CCPCs out of general rate income pool — grossed up 38% (138% taxable) with higher federal/provincial DTCs.
- Non-eligible dividend
- Other-than-eligible CCPC dividends — 115% gross-up and lower DTC rates on lines 12010 / Form 428.
- Gross-up
- Adds a portion of the dividend to taxable income before credits — 38% eligible, 15% non-eligible in 2026.
- Dividend tax credit (DTC)
- Non-refundable credit on grossed-up dividends — federal line 40425 plus provincial Form 428 line 61520.
- Net tax on dividend
- Change in income-tax liability with vs without the dividend after DTCs — hub ranking metric.
- Effective rate
- Net tax on dividend ÷ actual cash dividend; can be negative when credits offset other tax.
- Form 428
- Provincial tax form where provincial dividend tax credits are calculated per province/territory.
- Other income
- Employment, pension, interest, etc. that sets your bracket before dividends — held at $80,000 on this hub for comparability.
Frequently asked questions
British Columbia ranks #1 with about $162.87 net tax on $10,000 cash dividends with $80,000 other taxable income (single, 2026). Highest here: Newfoundland and Labrador at $1,945.67.
$10,000 cash dividends with $80,000 other taxable income (single, 2026). Rankings sort by incremental net tax on $10,000 eligible Canadian dividends; non-eligible figures use the same cash amount and other income.
Cash dividends are grossed up to 138% of the actual amount, taxed through federal and provincial brackets, then reduced by federal DTC (15.0198% of grossed-up) and provincial DTC (varies by province).
Not on this vignette: Ontario eligible net tax is about $638.97 vs Alberta $1,015.71 — Ontario is lower by $376.74 here. Outcomes depend on other income and dividend type.
On the hub vignette, Ontario eligible net $638.97 vs Québec $1,638.88 (gap $999.91). Québec uses provincial DTC 11.7000% eligible / 3.4200% non-eligible plus the federal abatement model.
British Columbia models the lowest eligible net tax ($162.87, effective 1.63%) at $80,000 other income because provincial DTC and bracket stacking differ from Alberta and Ontario — not because BC has no provincial tax.
DTCs are non-refundable. A negative effective rate on the dividend means credits offset tax on the dividend and can reduce tax on other income, but they do not create a refund by themselves.
No. Foreign dividends, capital gains, return of capital, and full alternative minimum tax interactions are outside this hub — use the dividend tax calculator for custom inputs.
CRA lines 12000/12010 and 40425, provincial Form 428 DTC lines, and TaxTips.ca combined marginal tables — linked in our methodology section.
Calculate your dividends
Eligible vs non-eligible, any province, custom other income.