Understanding the T5 Slip: Investment Income in Canada

What Is a T5 Slip?

Quick tip: download the official T2209 first, then fill it while following this guide: Download T2209 form (official CRA).

The T5 slip, officially called the Statement of Investment Income, is a tax document issued by Canadian financial institutions (banks, credit unions, investment companies) to report investment income you earned during the year. This includes interest from savings accounts, Guaranteed Investment Certificates (GICs), bonds, and dividends from Canadian corporations.

If you have a savings account at a Canadian bank that earned more than $50 in interest during the year, the bank will issue you a T5 slip. You must report this income on your T1 General tax return.

When Will You Receive Your T5?

Like most tax slips, T5s must be issued by the last day of February following the tax year. You may receive it by mail or through your bank's online banking portal. You can also find it in CRA My Account after mid-March.

Newcomer tip: Even if you only earned a small amount of interest, you are required to report it on your tax return — whether or not you receive a T5. Financial institutions are not required to issue a T5 if the interest is $50 or less, but you must still report the income.

Key Boxes on the T5 Slip

Box 13: Interest from Canadian Sources

This shows the total interest income you earned from the institution. It includes interest on savings accounts, GICs, term deposits, and bonds. Report this amount on Line 12100 of your T1 tax return.

Newcomer tip: When you first arrive in Canada and open a bank account, any interest earned — even a few dollars — is taxable income. Many newcomers are surprised to learn this, as some countries don't tax small amounts of bank interest.

Box 14: Other Income from Canadian Sources

This can include royalties, annuity payments, or other investment income that doesn't fit in other categories.

Box 24: Actual Amount of Eligible Dividends

If you own shares of Canadian corporations (either directly or through a non-registered investment account), this shows the actual dividends you received from "eligible" corporations — typically large, publicly traded companies.

Box 25: Taxable Amount of Eligible Dividends

This is the "grossed-up" amount of eligible dividends. Canada uses a system called the dividend gross-up and tax credit. The amount in Box 25 is 138% of the actual dividends in Box 24. You report Box 25 on Line 12000 of your T1, but you also claim a dividend tax credit to offset the gross-up. Tax software handles this automatically.

Box 10: Actual Amount of Other Than Eligible Dividends

Dividends from small Canadian-controlled private corporations (CCPCs) are classified as "other than eligible." This box shows the actual amount.

Box 11: Taxable Amount of Other Than Eligible Dividends

The grossed-up amount of other dividends (115% of Box 10 for 2025). Report this on Line 12000 with a different dividend tax credit rate.

Box 18: Capital Gains Dividends

If you own units in a mutual fund trust, capital gains may be distributed to you. This box shows those amounts, reported on Schedule 3 of your T1.

Box 26: Dividend Tax Credit for Eligible Dividends

This is the federal dividend tax credit you can claim to offset the gross-up on eligible dividends. Enter this on Line 40425 of your T1.

How to Report T5 Income on Your Tax Return

1. Interest income (Box 13): Add all interest from all T5 slips and report the total on Line 12100.
2. Dividend income (Box 25 and/or Box 11): Add the taxable amounts and report on Line 12000.
3. Dividend tax credit (Box 26): Claim the credit on Line 40425 (Schedule 1).
4. Foreign income: If your T5 includes foreign investment income (Box 15), report it on Line 12100 and you may be able to claim a foreign tax credit.

If using tax software, simply enter the box numbers from your T5 slip and the software will place everything on the correct lines.

Investment Income and Tax-Free Accounts

Not all investment income is reported on a T5. Canada offers tax-advantaged accounts where your earnings grow tax-free or tax-deferred:

• TFSA (Tax-Free Savings Account): Interest, dividends, and capital gains earned inside a TFSA are completely tax-free. You will not receive a T5 for TFSA earnings.
• RRSP (Registered Retirement Savings Plan): Earnings inside an RRSP are tax-deferred — you don't pay tax until you withdraw. No T5 for RRSP earnings while they stay inside the plan.
• RESP (Registered Education Savings Plan): Earnings grow tax-deferred.
• FHSA (First Home Savings Account): Earnings are tax-free, similar to a TFSA.

Newcomer tip: As soon as you arrive in Canada, you can open a TFSA if you are 18 or older and have a valid SIN. Your contribution room starts accumulating from the year you become a Canadian resident. For 2025, the annual TFSA limit is $7,000. This is one of the best tools for newcomers to grow savings tax-free.

What If You Have Foreign Investment Income?

If you earn investment income from outside Canada — for example, interest from a bank account in your home country or dividends from foreign stocks — you must report this on your Canadian tax return, even if no T5 is issued.

• Report foreign interest on Line 12100
• Report foreign dividends on Line 12100 (not Line 12000, since the dividend gross-up only applies to Canadian corporations)
• If foreign tax was withheld, you may be able to claim a foreign tax credit on Form T2209

Newcomer tip: If you have foreign investments worth more than $100,000 CAD at any point during the year, you may need to file form T1135 (Foreign Income Verification Statement). See our guide on T1135 for details.

Common Mistakes Newcomers Make with T5 Slips

1. Forgetting to report small amounts of interest: Even $10 of interest is taxable. Report all interest, even if below the $50 T5 threshold.
2. Confusing actual dividends with taxable dividends: Always report the taxable amount (Box 25 or Box 11), not the actual amount (Box 24 or Box 10).
3. Not reporting foreign investment income: Canadian residents are taxed on worldwide income. Interest earned in your home country must be reported.
4. Thinking TFSA interest needs to be reported: TFSA earnings are completely tax-free and do not go on your return.

Frequently Asked Questions

I opened a high-interest savings account. Will I get a T5?

If the interest earned exceeds $50, yes. If it's $50 or less, the bank may not issue a T5, but you must still report the interest on your tax return.

Do I report GIC interest in the year I earn it or the year the GIC matures?

Generally, you report interest as it accrues annually, not when the GIC matures. Your financial institution will issue T5 slips accordingly.

My bank issued a T5 with the wrong amount. What should I do?

Contact the bank and request an amended T5. Do not file your return with incorrect amounts if you can get it corrected first.

I received a T5 from a financial institution I don't recognize. What should I do?

It could be from a subsidiary or trade name of your bank, or from an investment you forgot about. Check your CRA My Account to verify. If it's genuinely not yours, contact the CRA.

Investment income may seem complicated at first, but the T5 slip makes it straightforward once you understand the key boxes. As a newcomer, focus on understanding the difference between interest and dividends, take advantage of tax-free accounts like the TFSA, and always report your worldwide investment income. Your financial literacy will grow alongside your Canadian savings.

Download This Form

Before you submit anything, download the latest official file here: Download T2209 form (official CRA). Always use the latest version.

Related internal guides

• IMM 5257 guide
• IMM 1294 guide
• IMM 1295 guide
• IMM 5409 guide
• IMM 5532 guide

Official external resources

• Download T2209 form (official CRA)
• IRCC forms and guides library
• IRCC document checklists
• CRA forms and publications
• IRCC processing times

What if You Don't Receive Your T5 Slip?

While financial institutions are required to issue T5 slips by the end of February each year for the previous tax year's investment income, sometimes slips can be delayed, lost in the mail, or simply not issued if the income was below a certain threshold (e.g., less than $50 for interest income). If you haven't received a T5 slip by early March, here's what you should do: 1. **Contact the Issuer:** Your first step should be to reach out directly to the financial institution, bank, or brokerage firm that holds your investments. They can often provide a duplicate slip or confirm if one was issued. 2. **Check Your CRA My Account:** The Canada Revenue Agency (CRA) often receives digital copies of T5 slips and other tax slips directly from financial institutions. You can access these through your secure CRA My Account online portal. Many slips become available here even before you receive a paper copy. 3. **Report All Income:** It is crucial to remember that you are legally obligated to report all income earned in Canada, whether or not you receive an official slip. If you know you earned interest or dividend income but haven't received a T5, you must still calculate and report this income on your tax return. Keep meticulous records of all your investment transactions. For further assistance with understanding your tax obligations, our Tax Guide offers comprehensive support for newcomers.

Beyond the T5: Other Investment Income Newcomers Should Track

While the T5 slip covers interest and most dividend income, it's important for newcomers to understand that other forms of investment income exist and have different tax implications. Being aware of these will help you accurately report your earnings and avoid future tax issues. * **Capital Gains:** If you sell investments like stocks, mutual funds, or even real estate (that isn't your primary residence) for more than you paid for them, you realize a capital gain. Only 50% of a capital gain is taxable. You'll generally receive a T5008 slip from your broker for securities transactions, but this slip reports the proceeds of disposition, not necessarily the gain or loss. You are responsible for calculating your capital gain or loss using your purchase and sale records. * **Rental Income:** If you own property in Canada and rent it out, the income you receive from tenants (less eligible expenses) is considered rental income. This is reported on a T776 Statement of Real Estate Rentals, not a T5. * **Foreign Investment Income:** If you hold investments outside of Canada, any income generated (interest, dividends, capital gains) must generally be reported to the CRA, subject to specific rules and potential foreign tax credits. Understanding these different income types is vital for comprehensive financial planning. You can explore our Benefits Finder to see how various income streams might affect your eligibility for Canadian government benefits.

Smart Investment Strategies and Tax Planning for Newcomers

As a newcomer, understanding Canada's tax-advantaged investment accounts can significantly help you grow your wealth more efficiently. Two key accounts to familiarize yourself with are the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP). * **Tax-Free Savings Account (TFSA):** This is an incredibly versatile account where your investments (cash, GICs, mutual funds, stocks, etc.) can grow tax-free. Any interest, dividends, or capital gains earned within a TFSA are not taxed, and withdrawals are also tax-free. This means you won't receive a T5 for income earned inside a TFSA, and you don't report TFSA income on your tax return. Contribution room for a TFSA starts accumulating from the year you turn 18 and become a Canadian resident. * **Registered Retirement Savings Plan (RRSP):** An RRSP is primarily designed for retirement savings. Contributions to an RRSP are tax-deductible, meaning they reduce your taxable income in the year they are made. Investments inside an RRSP grow tax-deferred until you withdraw them, typically in retirement, when they are taxed as income. Like TFSAs, you won't receive T5 slips for income earned within an RRSP. Utilizing these accounts can significantly reduce your tax burden on investment income. It's important to understand your eligibility and contribution limits. For personalized advice on managing your finances and navigating tax complexities as a newcomer, our AI Navigator is an excellent resource to help answer your specific questions. You can also find more detailed information on registered plans directly from the CRA: CRA Registered Plans

Related Resources

WelcomeAide Tools

• WelcomeAide Blog — browse all newcomer guides and updates
• Tax Guide — understand taxes, filing deadlines, and common credits
• Banking Guide — compare newcomer banking options and account types
• Cost Calculator — estimate monthly living costs in Canada
• Benefits Guide — find federal and provincial financial supports

Related Guides

• Guide to the T4 Slip in Canada: Understanding Your
• How to Fill Out the T2202 Tuition and Enrolment
• How to Fill Out the TD1 Personal Tax Credits Return Form

Official Government Sources

• Canada Revenue Agency (CRA)
• Government of Canada Taxes
• File an Income Tax Return
• Financial Consumer Agency of Canada
• Government of Canada Finance Services
• GST/HST for Businesses

.