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Canadian Dividend Tax Estimator
Estimate the change in federal and provincial or territorial income tax from a Canadian cash dividend. See the dividend’s gross-up, taxable amount, credit detail and amount after estimated income tax.
CALCULATOR GUIDE
How this estimate works
What the calculator estimates
This calculator estimates the change in income tax from one Canadian cash dividend identified as an eligible dividend or an other-than-eligible dividend. It also shows how the cash dividend becomes a taxable dividend, how dividend tax credits are reflected in the calculation, and the amount remaining after estimated income tax.
What the estimate covers
The estimate covers the federal and provincial or territorial income-tax effect of one Canadian cash dividend using the selected dividend type, starting taxable income, jurisdiction and 2026 tax data. The amount entered is the cash dividend before gross-up.
Calculation method
The calculator first estimates income tax before the dividend is added. It then applies the applicable gross-up to the cash dividend to determine the taxable dividend, adds that taxable amount to income, applies the relevant dividend tax-credit treatment, and recalculates the income tax.
The difference between the two tax calculations is the estimated income-tax change from the dividend. The grossed-up taxable dividend is included once; the cash dividend is not added again on top of it.
The percentage shown for the result uses the actual cash dividend as its denominator, not the grossed-up taxable dividend.
Understanding the result
The primary result is the estimated income-tax change caused by this dividend. It is not your total annual income tax or a calculated tax refund.
The dividend tax-credit amounts shown in the details explain the calculation. The final tax-change result already reflects the credit treatment applied by the calculator, so do not subtract those credit amounts again.