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Non-Eligible Dividend – New Rules

posted Nov 6, 2013, 11:31 PM by Margaret Lin CPA, CGA, CFP   [ updated Nov 7, 2013, 12:31 AM ]

Effective in 2014, for non-eligible dividends paid after 2013, the gross-up factor will be reduced from 25% to 18% and the corresponding federal dividend tax credit will be reduced from 13.33% of gross up amount to 11.02%.  If you are in BC and in the highest tax bracket, the combined federal tax rate and BC tax rate will be increased by 4.27%, from 33.71% to 37.98%.

 

The table below summarizes the increase rate for each tax bracket in the province of B.C. for non-eligible dividend paid after year 2013.

 

2014

Taxable  Income

Thresholds

  2014 Marginal Tax Rates

2013

Taxable  Income

Thresholds

  2013 Marginal Tax Rates

Increased by

first $37,606

7.61%

first $37,568

4.16%

3.45%

over $37,606 up to $43,953

10.73%

over $37,568 up to $43,561

7.46%

3.27%

over $43,953 up to $75,213

18.99%

over $43,561 up to $75,138

16.21%

2.78%

over $75,213 up to $86,354

22.29%

over $75,138 up to $86,268

19.71%

2.58%

over $86,354 up to $87,907

24.40%

over $86,268 up to $87,123

21.95%

2.45%

over $87,907 up to $104,859

29.12%

over $87,123 up to $104,754

26.95%

2.17%

over $104,859 up to $136,269

31.97%

over $104,754 up to $135,054

29.96%

2.01%

over $136,269 up to $150,000

35.51%

over $135,054

33.71%

1.80%

over $150,000

37.98%

over $150,000

33.71%

4.27%

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