How to Report T5 Investment Income on Your Tax Return
A T5 reports investment income over $50. It covers bank interest, dividends, and capital gains distributions. Each box maps to a specific line of your T1. And the dividend tax credit means eligible dividends are taxed at a lower rate in the end.
At a glance
- Cost:
- Free
- Total time:
- 30–60 minutes
- Steps:
- 7 steps
- Where to apply:
- canada.ca, ircc.canada.ca, cra-arc.gc.ca, or your provincial agency
Last reviewed October 2026 against official sources. Re-checked every 6 months · next review due April 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official CAN sources(October 2026).
0 of 7 steps
- Before You Go 20 min
Collect every T5 — including small ones
Every financial institution that paid you $50+ in investment income issues a T5. The CRACanada Revenue Agency — Canada's tax agency. It administers income tax, benefits like the Canada Groceries and Essentials Benefit (formerly the GST/HST credit), and CRA My Account.Click for official info ↗ gets a copy too. A missing slip leads to an automated letter months later. Log in to each bank and brokerage. Download your tax slips from the documents section. CRA My Account's Auto-fill my return catches them all.
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- Before You Go 15 min
Read the boxes correctly
Box 13: interest from Canadian sources. It is fully taxed at your marginal rate. Boxes 24/25/26: eligible dividends. Box 24 is the actual amount. Box 25 is the grossed-up taxable amount. Box 26 is your pre-calculated federal dividend tax credit. Boxes 10/11/12: non-eligible ("other than eligible") dividends. Box 15: foreign income. Foreign tax paid is in box 16. You can claim it as a Foreign Tax Credit on line 40500. Box 18: capital gains dividends. This goes to line 17400 of Schedule 3. Each box maps to a specific T1 line. Your software does the routing.
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- Fill / Prepare 10 min
Enter interest income (Box 13)
Interest is taxed at your full marginal rate. There is no special lower rate. It goes on line 12100 (was line 121). Do you have interest under $50, with no T5? Report it anyway. The duty to report follows the income, not the slip.
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- Fill / Prepare 15 min
Enter dividends and claim the tax credit
Eligible dividends (Boxes 24/25) are grossed up by 38%. Then the federal dividend tax credit offsets them. The credit is 15.0198% of the grossed-up amount. It is pre-printed in box 26. Provincial credits apply too. The end result is a lower rate than salary. Your software works out line 40425 and the credit on its own. Just enter the box amounts exactly as printed.
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- Fill / Prepare 15 min
Handle foreign dividends and withholding tax
US stocks in a non-registered account lose 15% to US withholding tax. Claim it back through the Foreign Tax Credit on line 40500. Inside a TFSA, you cannot get the withholding back. Inside an RRSP, it does not apply to US dividends. This is why US stocks belong in RRSPs first, for many investors.
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- Submit & Pay 10 min
File and reconcile with your assessments
NETFILENETFILE — CRA's service for filing your own tax return online using certified software.Click for official info ↗ your return. The CRA computer matches every T5 within weeks. Is a slip wrong? Ask the issuer for an amended T5 before you file. Do not fix it yourself. Keep your slips and brokerage summaries for 6 years.
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- Follow Up 20 min
Plan next year: use TFSA and RRSP room
Interest and dividends inside a TFSA are tax-free. No T5 is issued. Inside an RRSP, the tax is delayed. Are your T5s growing? Check your TFSA and RRSP contribution room on your Notice of Assessment. Shelter the highest-taxed income first: interest, then foreign dividends, then eligible dividends.
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FAQ
Frequently Asked Questions
I did not get a T5 but I earned bank interest. Do I report it?
Yes. Banks only issue T5s for $50+ to one recipient. But all interest is taxable, no matter the amount. Add it up from your statements. Report it on line 12100. The CRA can assess unreported income years later, with penalties.
What is the difference between a T5 and a T3?
A T5 covers interest and dividends paid directly to you. A T3 covers income that flows through trusts and mutual funds. This includes capital gains distributions, return of capital, and foreign income. Both go on your T1. Auto-fill my return captures both.
Do I pay tax on T5 income inside my TFSA?
No. TFSA investment income is tax-free. It gives you no T5. The exception is US withholding tax on US dividends inside a TFSA. The US takes it, and Canada cannot credit it back. US stocks are more tax-efficient inside an RRSP.
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