Quebec dividend tax, 2026

At the top bracket, Quebec taxes eligible Canadian dividends at 40.11% against 53.31% on ordinary income — an advantage of 13.20 points for holding the same money as dividends rather than as interest or salary.

Top eligible dividend rate: 40.11%
Rank of 13: 11; 1 is the lowest rate
First bracket to: $54,345

Every bracket

Taxable income up to	Eligible dividends	Non-eligible	Capital gains	Ordinary income
$54,345	2.00%	16.94%	12.85%	25.69%
$58,523	8.90%	22.69%	15.35%	30.69%
$108,680	16.39%	28.93%	18.06%	36.12%
$117,045	23.29%	34.68%	20.56%	41.12%
$132,245	29.63%	39.96%	22.86%	45.71%
$181,440	32.04%	41.97%	23.73%	47.46%
$258,482	35.83%	45.13%	25.10%	50.21%
and above	40.11%	48.70%	26.65%	53.31%

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

Quebec ranks 11 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.