Calculator · Canada & US
After-tax dividend comparator (estimate)
Estimate what you keep from eligible, non-eligible and US dividends by province and account type (TFSA, RRSP, non-registered), or as a US taxpayer. 2026 estimate.
Same dividend, different account, different result. This is an estimate, so check your own return before acting on it.
Where you file taxes
Your situation (Canada)
Quebec is not modelled (separate provincial return).
Employment, pension, interest, RRSP/RRIF withdrawals.
Shows the OAS recovery tax effect of the grossed-up dividend.
What you keep this year
Eligible, non-registered
$4,681
Tax rate on eligible
6.4%
Tax rate on non-eligible
20.3%
Rate on US dividends
29.6%
| Income type | Non-registered | TFSA | RRSP / RRIF (today) |
|---|---|---|---|
| Canadian eligible dividend | $4,681 | $5,000 | $5,000 |
| Canadian non-eligible dividend | $3,986 | $5,000 | $5,000 |
| US dividend (15% treaty withholding) | $3,518 | $4,250 | $5,000 |
| Interest, for comparison | $3,518 | $5,000 | $5,000 |
- Net income rises by $6,900 for $5,000 of eligible dividends (the 38% gross-up).
- RRSP/RRIF: nothing is taxed when the dividend is paid, but every dollar withdrawn later is taxed as ordinary income with no dividend tax credit. The column shows today's cash only.
- TFSA: Canadian dividends are tax-free; US dividends lose the 15% withholding permanently.
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.
How to use it
- Choose Canada or United States.
- Canada: pick your province or territory, enter your other taxable income and the dividend amount. The table compares eligible, non-eligible and US dividends across account types.
- United States: pick a filing status, enter taxable income before the dividends and the split between qualified and non-qualified dividends.
- Read the notes under the result: they list what the estimate leaves out.
Method and limits
- Canada: 2026 federal and provincial brackets and basic personal amounts; eligible dividends grossed up 38% with a 15.0198% federal credit, non-eligible grossed up 15% with a 9.0301% federal credit; provincial dividend tax credits from the latest published provincial forms; credits are non-refundable; Ontario surtax applied before the Ontario dividend credit. The extra tax is the difference between tax with and without the dividend.
- US dividends for Canadians: 15% treaty withholding in a TFSA or non-registered account, none in an RRSP/RRIF. In a non-registered account the dividend is taxed like interest with a simplified foreign tax credit (the lesser of the withholding and the Canadian tax on it).
- RRSP/RRIF: no tax when the dividend is paid; withdrawals are later taxed as ordinary income with no dividend credit. The table shows today's cash effect only.
- United States: 2026 qualified-dividend breakpoints (Rev. Proc. 2025-32) stacked on top of other taxable income; non-qualified dividends at the ordinary marginal rate you choose; 3.8% net investment income tax above the MAGI threshold. State tax, AMT and phase-outs are not modelled.
- Quebec is not modelled (separate Revenu Québec return). The Ontario Health Premium, age and pension credits, alternative minimum tax and income-tested benefits other than the OAS clawback flag are left out.
Frequently asked questions
Why can eligible dividends be taxed at a negative rate?
At lower incomes the dividend tax credit can exceed the tax on the grossed-up dividend, so the credit reduces tax on your other income. The credits are non-refundable: they can bring your tax to zero but not create a refund. The calculator applies that floor.
Why does the grossed-up amount matter if I pay little tax?
Your net income includes the grossed-up amount (138% of eligible dividends). Income-tested benefits and credits, including the OAS recovery tax, look at net income, so large eligible dividends can reduce benefits even when the tax itself is low.
Are these my real tax numbers?
No. It is an estimate built from published 2026 brackets and the latest published credit rates, and it leaves out many credits and situations. Your actual return, or a qualified tax professional, is the authority.
Primary sources
- CRA — Line 12000 and 12010: Taxable amount of dividends
- CRA — Line 40425: Federal dividend tax credit
- CRA — 5000-D1 Federal Worksheet (2025): gross-up and dividend tax credit rates
- CRA — 2025 provincial and territorial worksheets (5001-D to 5014-D): dividend tax credit rates
- CRA — Tax rates and income brackets for individuals (current year)
- CRA — T4127 Payroll Deductions Formulas (January 2026)
- CRA — Line 12100: Interest and other investment income (foreign dividends)
- CRA — Line 40500: Federal foreign tax credit (Form T2209)
- Service Canada — OAS pension recovery tax
- Canada–United States Tax Convention, consolidated text (Department of Finance Canada)
- IRS — Revenue Procedure 2025-32 (2026 inflation adjustments, section 4.03)
- IRS — Net investment income tax
- IRS — Publication 550, Investment Income and Expenses
Rules checked October 31, 2026. Tax rules and rates change; confirm current details on the official pages above.