- Canadian Tax Resource Blog - http://blog.taxresource.ca -

Dividend Tax Credit

The dividend tax credit is a non-refundable tax credit that may be deducted from personal taxes. The dividend is grossed up and this grossed up amount is included in taxable income as follows:

The corresponding tax credits are equal to 11/18th of the grossed up amount of the eligible dividends (45%) and 2/3 of the grossed up amount for all other dividends (25%). For example eligible dividends: