Dividend Gross Up Calculator
Calculation Results
Note: This calculator provides estimates based on current Canadian tax rules. For eligible dividends in 2025, the gross-up rate is typically 38% and federal tax credit is 15%. For non-eligible dividends, the rates are typically 15% and 9% respectively. Provincial rates vary. Consult a tax professional for precise calculations.
What is the Dividend Gross Up Calculator?
A Dividend Gross Up Calculator is a financial tool designed to help Canadian investors determine the taxable amount of dividends received from corporations. In Canada, dividends are taxed using a two-step process:
- Gross-Up: The dividend amount is increased ("grossed up") to reflect the pre-tax corporate income.
- Dividend Tax Credit (DTC): A credit is applied to avoid double taxation since corporations already pay corporate income taxes.
This calculator simplifies complex tax calculations, ensuring investors accurately report dividend income and optimise tax efficiency.
Table of Contents
Features of the Dividend Gross Up Calculator:
✅ Automatic & Manual Modes
- Automatic Mode: Uses pre-loaded 2025 Canadian tax rates for eligible and non-eligible dividends.
- Manual Mode: Allows custom input for gross-up rates and tax credits (useful for unique tax scenarios).
✅ Supports Both Dividend Types
- Eligible Dividends (from public corporations)
- Non-Eligible Dividends (from small business corporations)
✅ Real-Time Calculations
- Computes:
- Grossed-up dividend amount
- Federal & provincial tax credits
- Final taxable dividend income
User Guide: Automatic vs. Manual Mode
Automatic Mode (Default)
- Select Dividend Type → Choose "Eligible" or "Non-Eligible."
- Enter Dividend Amount → Input the cash dividend received.
- Click "Calculate Gross-Up" → Results display instantly.
🔹 Example:
- Eligible Dividend ($1,000)
- Gross-Up (38%) → $1,380
- Federal Tax Credit (15%) → $207
- Taxable Income → $1,173
Manual Mode (Custom Rates)
- Toggle "Manual Entry" → Enable custom rate inputs.
- Enter Rates → Gross-up%, federal & provincial credits.
- Calculate → See adjusted results.
🔹 Use Case:
- If tax laws change mid-year, manually adjust rates for accurate reporting.
Latest Canadian Dividend Tax Rules (2025)
📊 2025 Gross-Up Rates & Tax Credits
| Avg.. Provincial Credit | Gross-Up Rate | Federal Credit | Avg. Provincial Credit |
|---|---|---|---|
| Eligible | 38% | 15% | 10% |
| Non-Eligible | 15% | 9% | 3.5% |
Key Changes for 2025
- No major rate changes from 2024, but always verify with CRA.
- Provincial variations: Alberta, Ontario, and Quebec may have different credit rates.
Benefits of Using the Dividend Gross Up Calculator:
💡 Tax Optimisation
- Avoid under-/over-reporting dividend income.
- Maximise dividend tax credits to reduce payable taxes.
💡 Financial Planning
- Compare after-tax returns from eligible vs. non-eligible dividends.
- Forecast tax liabilities for investment decisions.
💡 Compliance & Accuracy
- Ensures correct tax filing per CRA guidelines.
- Reduces errors in self-reported income.
💡 Time-Saving
- No manual math or complex Excel formulas needed.
The Dividend Gross Up Calculator is an essential tool for Canadian investors. It ensures accurate tax reporting and maximises after-tax returns. Whether you use automatic 2025 rates or manual inputs, this calculator simplifies complex tax rules into actionable insights.