We are not able to provide investment advice. Speak to a registered financial advisor or accountant to calculate the credit for your investments. Generally, for eligible dividends:
- Add up your eligible dividends. These include most dividends from Canadian public companies and certain dividends from private companies.
- Multiply by 1.38. This number is your grossed-up dividends. (The amount added to the actual dividends is called the dividend gross up.)
- Add your grossed-up dividends to your income for the year.
- Calculate the tax on that grossed-up amount.
- Claim a federal dividend tax credit of approximately 15% of the grossed-up dividends.
- Claim a provincial tax credit based on where you live.
The Canada Revenue Agency (CRA) has more information on the taxable amount of dividends, both eligible and dividends other than eligible.