What is the difference between Box 10, Box 11, and Box 13 on a T5?

Box 10 is actual Canadian dividend income paid (the cash you received). Box 11 is the taxable amount of dividends — this is the grossed-up amount, which is 138% of actual dividends for eligible dividends (public corporation dividends) and 115% of actual for non-eligible dividends. Box 12 is the dividend tax credit. Box 13 is interest from Canadian sources (savings accounts, GICs, bonds). Box 15 is foreign investment income. Box 16 is foreign tax paid (which you may claim as a foreign tax credit).

Do I need to report T5 income if it''s a small amount?

Yes. All investment income — regardless of amount — must be reported on your tax return. Issuers are only required to produce a T5 slip if the annual income is $50 or more, but you still owe tax on amounts below $50. For small amounts (e.g., $3 in bank interest), report it on line 12100 of your T1 without a T5 slip. CRA matches T5 data submitted by financial institutions to your return — omitting T5 income typically triggers a reassessment.

Why is the taxable amount of dividends on my T5 higher than what I actually received?

This is the "dividend gross-up" — a Canadian tax mechanism where eligible dividends are reported at 138% of the actual cash dividend (non-eligible at 115%). The gross-up artificially inflates your income on paper but the dividend tax credit offsets this. The system attempts to integrate corporate and personal tax: corporations pay tax on profits, then distribute after-tax dividends. The gross-up + credit approximates the tax already paid at the corporate level, giving you partial credit and producing a lower effective tax rate on eligible dividends vs interest income.

Do I get a T5 for my TFSA or RRSP?

No. Income earned inside a TFSA, RRSP, RRIF, FHSA, or RESP does not generate a T5 and is not reported on your annual tax return. The shelter from tax inside registered accounts is precisely why they exist. You only receive T5 slips for investment income earned in non-registered (taxable) accounts. When you withdraw from an RRSP or RRIF, those withdrawals generate a T4RSP or T4RIF — not a T5.

What if I receive foreign investment income on my T5?

Box 15 (foreign income) on your T5 reports investment income from foreign sources — dividends from US or international stocks, foreign bond interest, or distributions from foreign REITs held in a non-registered account. Report this on line 12100 of your T1 in Canadian dollars (convert using the Bank of Canada average annual exchange rate). Box 16 (foreign tax paid) shows withholding tax paid to the foreign country — claim this as a foreign tax credit on Form T2209 to avoid double taxation.

What Is a T5 Slip in Canada?

Q: What is a T5 slip in Canada?

A T5 (Statement of Investment Income) reports investment income you earned during the year — bank interest, dividends from Canadian public companies, and foreign investment income. Your bank, credit union, brokerage, or mutual fund company issues a T5 whenever you earn $50 or more of investment income in a non-registered account. All T5 income is from non-registered accounts — income earned inside a TFSA, RRSP, RRIF, or FHSA does not appear on a T5.

Short Answer

A T5 slip reports investment income earned in your non-registered (taxable) accounts — bank interest, dividends from Canadian public companies, and foreign income. All T5 amounts must be reported on your T1 return. Income inside registered accounts (TFSA, RRSP, RRIF, FHSA) never appears on a T5.

T5 Box-by-Box Explanation

Box	Description	T1 line	Notes
10	Actual amount of eligible dividends	Used to calculate Box 11	Cash amount paid by Canadian public corps
11	Taxable amount of eligible dividends	Line 12000	Box 10 × 138% (gross-up)
12	Dividend tax credit (eligible)	Line 40425	Box 10 × 15.0198% federal credit
13	Interest from Canadian sources	Line 12100	Bank interest, GICs, bonds, savings
14	Other income from Canadian sources	Line 12100	Accrued interest, royalties
15	Foreign income	Line 12100	Convert to CAD at BOC annual rate
16	Foreign tax paid	Form T2209 (foreign tax credit)	Paid to foreign government (e.g., US dividend withholding)
17	Royalties from Canadian sources	Line 12100
18	Capital gains dividends	Line 17400 (Schedule 3)	From mutual funds/REITs flowing capital gains
24	Actual amount of non-eligible dividends	Used to calculate Box 25	Dividends from CCPCs and small corps
25	Taxable amount of non-eligible dividends	Line 12000	Box 24 × 115%
26	Dividend tax credit (non-eligible)	Line 40425	Box 24 × 9.0301% federal credit

Eligible vs Non-Eligible Dividends: What’s the Difference?

Feature	Eligible dividends	Non-eligible dividends
Paid by	Public corporations; large CCPCs	Private corporations accessing small business rate
Gross-up factor	138%	115%
Federal dividend tax credit	15.0198% of actual	9.0301% of actual
Effective tax rate (top bracket, ON)	~39.34%	~47.74%
Why it matters	Eligible dividends are taxed more favourably — strong argument for holding Canadian dividend stocks in non-registered accounts

Interest vs Dividends vs Capital Gains: Tax Efficiency Comparison

Income type	Effective top tax rate (Ontario 2025)	Can hold in TFSA/RRSP?
Interest income (T5 Box 13)	53.53%	Yes — fully sheltered inside registered accounts
Non-eligible dividends (T5 Box 25)	47.74%	Yes
Eligible dividends (T5 Box 11)	39.34%	Yes
Capital gains (50% inclusion)	26.77%	Yes

Asset location tip: Hold interest-generating investments (GICs, bond funds) inside registered accounts where possible — they receive no preferential tax treatment in non-registered accounts and are the least tax-efficient income type.

Who Issues T5 Slips

Institution	What they report
Banks and credit unions	Savings account interest, GIC interest
Brokerages, investment dealers	Dividends, foreign income, capital gains dividends
Mutual fund companies	Dividends, interest, capital gains distributions
Financial institutions (bond interest)	Accrued and paid bond interest
Credit card companies (interest income side)	Rare — only for interest paid to you

When You Don’t Get a T5 (But Still Owe Tax)

Situation	What to do
Investment income under $50	Report on T1 line 12100 without a T5
Foreign income with no Canadian slip	Report using foreign account statements (converted to CAD)
Late T5 not received	Check My CRA Account → Tax Information Slips; contact issuer
Accrued interest on compound GIC	Report annually even if not yet received

Foreign Withholding Tax (Box 16) and the Foreign Tax Credit

Many foreign dividends have withholding tax deducted at source (US dividends: typically 15% for RRSP, 15–30% for non-registered):

Scenario	Withholding	Action
US dividend in non-registered account	15% withheld (Canada-US treaty rate)	Report Box 15 income + claim Box 16 on Form T2209
US dividend in RRSP	0% — treaty exemption	No T5 issued for registered accounts
US dividend in TFSA	15% withheld — not recoverable	TFSA is not treaty-exempt; permanent loss of 15%

This is why many financial advisors recommend holding US dividend stocks in an RRSP (treaty protection) rather than a TFSA (no protection).

T5 and Jointly-Held Accounts

If a bank account or investment account is jointly held, the T5 may be issued entirely in one taxpayer’s name. CRA’s position is that each owner reports their proportionate share of the investment income based on who contributed the funds, not simply who is first named on the account. Maintain records of each person’s contribution percentage for joint accounts.

Bottom Line

A T5 slip is straightforward: Box 13 interest goes to line 12100; eligible dividend income (Box 11) goes to line 12000 with the dividend tax credit (Box 12) on line 40425; foreign income (Box 15) goes to line 12100 with a foreign tax credit claim. All T5 income must be reported regardless of amount. Income inside registered accounts does not generate T5 slips — a common point of confusion.

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