Dividend tax · British Columbia

Dividend tax in British Columbia

British Columbia's dividend tax credit is 12.00% of grossed-up eligible dividends and 1.9600% of grossed-up non-eligible dividends (2025 worksheet, latest published).

Here's what $1,000 of dividends costs in tax in British Columbia, next to the same $1,000 of interest.

Short answerWith $100,000 of other income in British Columbia, $1,000 of eligible dividends adds about $35 of 2026 tax (3.5%), non-eligible dividends about $210 (21%) and interest about $290 (29%). These are estimates from published brackets and credits.

British Columbia's dividend tax credit rates

Credit	Eligible dividends	Non-eligible dividends
Gross-up (federal rule)	38%	15%
Federal credit	15.0198%	9.0301%
British Columbia credit	12.0000%	1.9600%

Credits are a percentage of the grossed-up (taxable) amount: $1,000 of eligible dividends becomes $1,380 of taxable income, and the British Columbia credit on it is $165.60. Both credits are non-refundable, so they can reduce your tax to zero but not below.

Estimated 2026 tax on $1,000 of each kind of income

Other taxable income	Eligible dividends	Non-eligible dividends	Capital gains	Interest
$50,000	−$81	$116	$101	$209
$100,000	$35	$210	$141	$290
$200,000	$263	$404	$230	$461

At lower incomes the dividend tax credit can exceed the tax on the grossed-up dividend: with $50,000 of other income, $1,000 of eligible dividends reduces total tax by about $81. At higher incomes, half-taxed capital gains usually cost less than eligible dividends.

British Columbia 2026 income tax brackets used

Taxable income up to	Provincial rate
$50,363	5.60%
$100,728	7.70%
$115,648	10.50%
$140,430	12.29%
$190,405	14.70%
$265,545	16.80%
and above	20.50%

Basic personal amount used: $13,216. The estimate leaves out other credits, health premiums and benefits.

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Estimate for education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Results depend on your inputs and the simplifications listed under Method. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.

Primary sources

Rules checked October 31, 2026. Tax rules and rates change; confirm current details on the official pages above.