Alberta dividend tax, 2026

At the top bracket, Alberta taxes eligible Canadian dividends at 34.31% against 48.00% on ordinary income — an advantage of 13.69 points for holding the same money as dividends rather than as interest or salary.

Top eligible dividend rate: 34.31%
Rank of 13: 6; 1 is the lowest rate
First bracket to: $58,523

Every bracket

Taxable income up to	Eligible dividends	Non-eligible	Capital gains	Ordinary income
$58,523	-1.57%	12.41%	11.00%	22.00%
$61,200	7.40%	19.88%	14.25%	28.50%
$117,045	10.16%	22.18%	15.25%	30.50%
$154,259	17.75%	28.51%	18.00%	36.00%
$181,440	20.51%	30.81%	19.00%	38.00%
$185,111	25.05%	34.59%	20.65%	41.29%
$246,813	26.43%	35.74%	21.15%	42.29%
$258,482	27.81%	36.89%	21.65%	43.29%
$370,220	32.93%	41.16%	23.50%	47.00%
and above	34.31%	42.31%	24.00%	48.00%

Reading these figures

Dividend rates apply to the dividend actually received, not to the grossed-up amount — the 38% gross-up and the dividend tax credit are already inside them. Capital gains rates apply to the whole gain, not the taxable half. Applying either adjustment again double-counts it.

Nationally

Alberta ranks 6 of 13 on the top eligible dividend rate, where 1 is lowest. The range runs from 28.33% (Northwest Territories) to 46.20% (Newfoundland and Labrador). Compare all 13.

The threshold above these

Marginal rate is not the whole cost. Above $95,323 of net income, Old Age Security is recovered at 15% — and net income counts the grossed-up dividend, so eligible dividends reach that threshold on roughly 28% less cash than other income does. How that works.

Transcribed 2026-08-06 from a published rate table (source); the underlying brackets and credit rates are set federally and by the province (official figures). Machine-readable: rates.json.