2026 rates
| Eligible | Non-eligible | |
|---|---|---|
| Gross-up | 38% | 15% |
| Federal credit (of grossed-up) | 15.0198% | 9.0301% |
| Ontario credit (of grossed-up) | 10% | 2.9863% |
The grossed-up amount counts toward net income, so dividends can raise the OAS clawback and income-tested benefits even when little tax is due. A negative result means the credit also reduces tax on your other income.
FAQ
How much tax on $10,000 of eligible dividends in Ontario?
With $60,000 of other income, about $790 – roughly 8% of the dividend.
Sources (checked Nov 6, 2026): Income Tax Act s. 82, 121; Ontario Taxation Act s. 19; CRA 2026 rates.