Ontario Dividend Tax 2026

Eligible net $638.97 on $10,000 cash · rank #4 · provincial DTC 10.0000% eligible

Ontario dividend tax snapshot

Ontario taxes Canadian dividends with the same federal gross-up and dividend tax credits as other provinces, but provincial DTC rates on Form 428 differ. On $10,000 cash dividends with $80,000 other taxable income (single, 2026), modeled eligible net tax ≈ $638.97 (effective 6.39% on cash). Provincial DTC on grossed-up dividends: eligible 10.0000%, non-eligible 2.9863% (TaxTips.ca / provincial schedules). Net tax on the dividend is the change in income-tax liability after non-refundable DTCs — not CPP/EI. Ontario surtax applies before the provincial DTC; Ontario health premium is included in the income-tax total when applicable.

Eligible net tax ($10k)

$638.97

Eligible effective rate

6.39%

Non-eligible net ($10k)

$2,027.87

National rank (eligible)

#4 lowest net

Dividend tax in Ontario

Federal rules are identical nationwide; Ontario differs through provincial DTC rates (10.0000% eligible / 2.9863% non-eligible of grossed-up) and provincial bracket structure.

Where Ontario sits vs Canada

Ontario ranks #4 — eligible net tax $476.10 above British Columbia and $1,306.70 below Newfoundland and Labrador.

Non-eligible net tax on the same cash dividend is $2,027.87 (20.28% effective).

Provincial dividend tax credits

Percent of grossed-up taxable dividend (Form 428). Federal DTC is the same nationwide.

Eligible

10.0000%

Non-eligible

2.9863%

Who should care about Ontario dividend tax

Investors & retirees

Compare Ontario eligible vs non-eligible net tax when drawing $10,000 from Canadian stocks alongside other income.

Relocators

Moving to or from Ontario? Pair compares show eligible dividend gaps with Ontario, Alberta, and Québec using the same $80,000 other income assumption.

CCPC shareholders

Non-eligible dividends from small business corps face higher effective rates — check the non-eligible column on this profile before planning distributions.

Eligible net tax by dividend amount

variable cash cash dividends with $80,000 other taxable income (single, 2026)

Cash dividend	Net tax	After-tax cash
$1,000	$63.90	$936.10
$2,500	$159.74	$2,340.26
$5,000	$319.48	$4,680.52
$10,000	$638.97	$9,361.03
$25,000	$2,226.13	$22,773.87
$50,000	$8,430.64	$41,569.36

Planning checklist

Match dividend type to T5 boxes

Eligible (box 24) vs other-than-eligible (box 10) changes gross-up and DTC — use the calculator with the correct type.

Hold other income constant when comparing

This profile uses $80,000 other income; your marginal rate may differ.

Consider registered accounts

Dividends inside a TFSA or RRSP/RRIF follow different rules — this page is for non-registered Canadian dividends.

Personalize amounts

Open the dividend tax calculator with Ontario selected for any cash dividend and income level.

Compare Ontario

Compare any two provinces

Eligible dividend net tax on $10,000 cash with $80,000 other income (2026).

First province

Second province

Myths vs facts

“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.

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.

Ontario dividend tax FAQ

About $638.97 net incremental tax (6.39% effective) with $80,000 other income — after-tax cash ≈ $9,361.03.

Eligible 10.0000% and non-eligible 2.9863% of the grossed-up taxable dividend (plus federal DTC).

#4 of 13 — $476.10 above British Columbia on the hub vignette.

Same $10,000 cash: non-eligible net $2,027.87 (20.28%) vs eligible $638.97.

Yes for personal tax — you use Ontario provincial brackets and Form 428 DTC on your T1 if you are resident here on December 31 (simplified model).

Spousal dividends, multiple T5 slips, RRSP withdrawals in the same year, and benefit clawbacks can change marginal tax. This page is an educational estimate.

Model your dividends

Change amount, other income, and dividend type for Ontario.

Open calculator

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By Sammy S. · Founder · Author