Investment Income Tax Calculator
Different kinds of investment income are taxed at very different effective rates in Canada. This calculator shows the spread side by side: interest, eligible Canadian dividends, non-eligible dividends, capital gains, and foreign dividends, all by province.
Canadian tax law treats investment income asymmetrically. Interest income is fully included; eligible Canadian dividends get a gross-up and a federal + provincial dividend tax credit; capital gains are included at 50%; and foreign dividends are taxed at the same rate as interest with foreign tax credits applied separately.
For a non-trivial portfolio, the effective tax rate on $10,000 of interest can be more than double the effective rate on $10,000 of eligible dividends. This calculator visualises that spread for any combination of income types and province.
Preview — the interface is shown here for reference. The calculation engine is in development. In the meantime, the Detailed Income Tax Calculator handles all of these income types end-to-end.
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