British Columbia announced on October 11 that the dividend tax credit would be increased; E&Y has updated its on-line Tax Calculator to October 12
So lets plug in some numbers for British Columbia:
Investors | Taxable Income | Marginal Rate on Interest | Marginal Rate on Dividends | Equivalency Factor |
Widows & Orphans | $30,000 | 21.3% | 0.00% | 1.27 |
Professionals | $75,000 | 37.70% | 10.20% | 1.44 |
Plutocrats | $150,000 | 43.70% | 18.47% | 1.45 |
So not only are tax rates lower in BC than in Ontario, they have a more favourable Dividend/Income conversion ratio as well! Huh!
[…] I’m not sure exactly how I did it, but when I was writing the BC Taxation Update, I wiped out the Ontario one from September 15, that I will now replace. […]
[…] The equivalency factors aren’t as good as for BC and Ontario! It almost eases the sting of realizing just how low taxes are out […]