Dividend investing in Canada
Eligible dividends, provincial credits, which account holds what, US withholding and the OAS clawback: the Canadian rules that change what a dividend is worth to you.
The four Canadian rules that matter most
- Eligible dividends get a gross-up and credit. 38% gross-up and a 15.0198% federal credit, plus a provincial credit. How it works.
- US dividends lose 15% at the border, except in an RRSP or RRIF. In a TFSA that 15% is gone for good. TFSA · RRSP.
- The grossed-up amount counts in net income. That can trigger OAS recovery tax for retirees. OAS and dividends.
- Reinvested dividends still count. They are taxable in a non-registered account and raise your adjusted cost base. DRIP and ACB.
Canadian tax pages
How the Canadian dividend tax credit works
How the Canadian dividend tax credit works: the 38% and 15% gross-ups, federal credit rates, provincial credits, and a worked $1,000 Ontario example.
Canadian dividend taxEligible vs non-eligible dividends: what’s the difference?
Eligible vs non-eligible dividends: how the CRA defines each, how to spot them on a T5 slip, and how the tax differs at two Ontario income levels in 2026.
Cross-border dividendsUS dividends in a TFSA: why 15% is withheld
US dividends paid into a TFSA generally lose 15% to US withholding tax that can’t be recovered. Learn why, what it costs, and how RRSPs differ.
Cross-border dividendsUS dividends in an RRSP or RRIF: no US withholding
US dividends paid to an RRSP or RRIF are generally exempt from US withholding under Article XXI(2) of the Canada–US treaty. Here’s how it works and its limits.
Cross-border dividendsThe foreign tax credit on US dividends, for Canadians
In a non-registered account, US dividends are reported in full in Canadian dollars, taxed like interest, and the US tax withheld is claimed on Form T2209.
Canadian dividend taxHow dividends affect the OAS clawback
Grossed-up Canadian dividends count in net income for the OAS recovery tax. See the 2025 and 2026 thresholds and a worked dividend vs gain vs interest example.
Dividend reinvestmentDRIPs and adjusted cost base: how reinvested dividends are taxed
Reinvested DRIP dividends are taxable in the year paid and raise your adjusted cost base. See a worked average-cost table and the US rules too.
Cross-border dividendsThe Canada–US tax treaty and dividends
The Canada–US tax treaty generally cuts dividend withholding to 15%, or 5% for 10% corporate owners, and exempts retirement plans. See how it works both ways.
Calculators for Canadians
After-tax dividend comparator
Canadian province and account, or US filing status: what you keep.
CalculatorDividend vs interest vs capital gains (Canada)
Your marginal rate on each kind of investment income, by province.
CalculatorUS withholding tax calculator for Canadians
15% withheld in a TFSA, 0% in an RRSP: the yearly cost by account.
CalculatorDRIP compounding calculator
Reinvest versus take the cash, with growth, contributions and tax drag.
CalculatorDividend income calculator
Income per payment, month and year from your own share count and dividend.
CalculatorPayout ratio health checker
Earnings and cash-flow payout, coverage and debt, from numbers you enter.
By province
Alberta · British Columbia · Manitoba · New Brunswick · Newfoundland and Labrador · Nova Scotia · Northwest Territories · Nunavut · Ontario · Prince Edward Island · Saskatchewan · Yukon
Education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.