British Columbia dividend tax, 2026

At the top bracket, British Columbia taxes eligible Canadian dividends at 36.54% against 53.50% on ordinary income — an advantage of 16.96 points for holding the same money as dividends rather than as interest or salary.

Top eligible dividend rate: 36.54%
Rank of 13: 7; 1 is the lowest rate
First bracket to: $50,363

Every bracket

Taxable income up to	Eligible dividends	Non-eligible	Capital gains	Ordinary income
$50,363	-10.24%	9.91%	9.80%	19.60%
$58,523	-7.34%	12.32%	10.85%	21.70%
$100,728	1.63%	19.80%	14.10%	28.20%
$115,648	5.49%	23.02%	15.50%	31.00%
$117,045	7.96%	25.07%	16.40%	32.79%
$140,430	15.55%	31.40%	19.15%	38.29%
$181,440	18.88%	34.17%	20.35%	40.70%
$190,405	23.42%	37.95%	22.00%	43.99%
$258,482	26.32%	40.37%	23.05%	46.09%
$265,545	31.44%	44.64%	24.90%	49.80%
and above	36.54%	48.89%	26.75%	53.50%

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

British Columbia ranks 7 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.