Newfoundland and Labrador dividend tax, 2026

At the top bracket, Newfoundland and Labrador taxes eligible Canadian dividends at 46.20% against 54.80% on ordinary income — an advantage of 8.60 points for holding the same money as dividends rather than as interest or salary.

Top eligible dividend rate: 46.20%
Rank of 13: 13; 1 is the lowest rate
First bracket to: $44,678

Every bracket

Taxable income up to	Eligible dividends	Non-eligible	Capital gains	Ordinary income
$44,678	1.90%	12.04%	11.35%	22.70%
$58,523	9.91%	18.71%	14.25%	28.50%
$89,354	18.88%	26.19%	17.50%	35.00%
$117,045	20.67%	27.68%	18.15%	36.30%
$159,528	28.26%	34.01%	20.90%	41.80%
$181,440	31.02%	36.31%	21.90%	43.80%
$223,340	35.56%	40.09%	23.55%	47.09%
$258,482	38.32%	42.39%	24.55%	49.09%
$285,319	43.44%	46.66%	26.40%	52.80%
$570,638	44.82%	47.81%	26.90%	53.80%
$1,141,275	45.51%	48.38%	27.15%	54.30%
and above	46.20%	48.96%	27.40%	54.80%

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

Newfoundland and Labrador ranks 13 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.