Ontario dividend tax, 2026

At the top bracket, Ontario taxes eligible Canadian dividends at 39.34% against 53.53% on ordinary income — an advantage of 14.19 points for holding the same money as dividends rather than as interest or salary.

Top eligible dividend rate: 39.34%
Rank of 13: 10; 1 is the lowest rate
First bracket to: $53,891

Every bracket

Taxable income up to	Eligible dividends	Non-eligible	Capital gains	Ordinary income
$53,891	-8.24%	8.09%	9.53%	19.05%
$58,523	-2.58%	12.80%	11.58%	23.15%
$94,907	6.39%	20.28%	14.83%	29.65%
$107,785	8.92%	22.38%	15.74%	31.48%
$111,814	12.24%	25.16%	16.95%	33.89%
$117,045	17.79%	29.78%	18.95%	37.91%
$150,000	25.38%	36.10%	21.70%	43.41%
$181,440	27.53%	37.90%	22.48%	44.97%
$220,000	32.07%	41.68%	24.13%	48.26%
$258,482	34.22%	43.47%	24.91%	49.82%
and above	39.34%	47.74%	26.76%	53.53%

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

Ontario ranks 10 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.