Not all income is taxed equally. See your marginal rate on employment income, dividends, and capital gains — the way taxtips.ca lays it out, rebuilt with 2026 figures.
On your next dollar of each income type. Dividends are grossed-up first, then reduced by dividend tax credits; only 50% of capital gains is included in income.
| Taxable income | Employment | Eligible div. | Non-elig. div. | Capital gains |
|---|
Employment marginal rate = combined federal + provincial bracket rate at your income. Dividends: the dividend is grossed up (eligible 38%, non-eligible 15%), taxed at the combined rate on the grossed-up amount, then reduced by the federal and provincial dividend tax credits — evaluated at your grossed-up income level. Capital gains: combined rate × inclusion rate (50%). Surtaxes (Ontario) and the Quebec abatement are included; basic personal amounts don't change marginal rates. This is the standard taxtips.ca-style presentation, computed from 2026 CRA/KPMG figures.
