dividend tax credit Articles

How to Earn up to $50K Tax Free in Canada

How to Earn up to $50K Tax Free in Canada. Depending on the province, it’s possible for an individual with no other sources of income to earn around $50,000 in dividends without paying any tax at all. This amount varies by province due to the make up of the Dividend Tax Credits.

What is the Dividend Tax Credit

What is the dividend tax credit and what it means for Canadian investors. The credit was introduced by the Canadian government to avoid double taxing dividends. It applies to dividends paid to Canadian shareholders from Canadian Corporations. The credit is made up of a federal and a provincial component, as a result the final credit differs among provinces.