- A T5, the "Statement of Investment Income," is issued by banks, credit unions, and corporations to report certain income you earned from savings accounts, investments, or share ownership…
- - Interest income — from savings accounts, GICs, and similar interest-bearing investments held outside a registered account (an RRSP or TFSA, for example, doesn't generate a T5 for…
- Interest income is taxed straightforwardly — the amount reported is simply added to your income.
Once you start earning money from savings, investments, or a small stake in a company, a new slip usually joins the T4 in your tax-season pile: the T5. It reports investment income — mainly interest and dividends — and it's easy to overlook if you're used to thinking of your T4 as the only slip that matters.
This guide explains what a T5 generally covers, how the income on it is treated, and what to do if you had investment income but didn't receive one.
What a T5 Slip Is
A T5, the "Statement of Investment Income," is issued by banks, credit unions, and corporations to report certain income you earned from savings accounts, investments, or share ownership during the year. Unlike a T4, which comes from an employer, a T5 comes from a financial institution or a company you hold shares in.
You may receive more than one T5 in a year — one from your bank for interest on savings, another from a brokerage for dividends on shares you hold, and so on.
What Kinds of Investment Income Appear on a T5
- Interest income — from savings accounts, GICs, and similar interest-bearing investments held outside a registered account (an RRSP or TFSA, for example, doesn't generate a T5 for growth inside the plan).
- Dividends from Canadian corporations — payments made to shareholders out of company profits.
- Certain foreign investment income, in some circumstances.
Not every dollar of interest you earn will generate a T5. Financial institutions generally issue a T5 once interest paid reaches a threshold set by the CRA; smaller amounts may never trigger a slip. That doesn't mean the income isn't taxable — it still needs to be reported, slip or no slip.
Dividends: A Different Tax Treatment Than Interest
Interest income is taxed straightforwardly — the amount reported is simply added to your income. Dividends from Canadian corporations work differently: they go through a "gross-up and tax credit" mechanism intended to account for tax the corporation already paid on its profits before distributing them to you. In practical terms, this generally means Canadian dividend income is taxed somewhat more favourably than an equivalent amount of interest income, though the exact effect depends on the type of dividend and your overall tax situation.
Because the mechanics and current rates behind this calculation are adjusted from time to time, let your tax software or accountant apply the current-year numbers rather than estimating the after-tax effect yourself.
How T5 Income Combines With Your T4 Income at Tax Time
Your T5 income doesn't sit in a separate silo — it's added to your other income, including T4 employment earnings, to determine your total income for the year and the tax bracket that applies to your overall situation. A significant amount of investment income can therefore push some of your income into a higher bracket, or affect income-tested benefits and credits that look at your total income rather than just your employment earnings.
This is also why it's worth checking your T5 income against your own investment records each year — a missed T5, or interest that wasn't reported because no slip arrived, can lead to a reassessment later if the CRA's own information (often received directly from the financial institution) doesn't match what you filed.
What If You Didn't Receive a T5 But Had Investment Income
- Check your account statements. Smaller amounts of interest may not generate a slip but are still taxable.
- Ask your financial institution or brokerage whether a T5 was issued and simply didn't reach you.
- Report the income anyway. You're required to report all your income for the year, regardless of whether you received a slip for it.
- Keep your own records of interest and dividends received, in case the CRA's records don't match a slip you never got.
Frequently asked questions
Do I get a T5 for interest earned inside my TFSA or RRSP?
Generally no — income earned inside a registered account like a TFSA or RRSP isn't reported on a T5, because it isn't taxed the same way as income earned outside those accounts. Withdrawals from certain registered accounts may trigger a different slip instead.
I have a joint account with my spouse. Who reports the T5 income?
Investment income from a joint account is generally reported based on each person's contribution to the funds in the account, which isn't always a simple 50/50 split. Talk to an accountant about how to allocate it correctly.
What happens if I forget to report a small T5 amount?
The CRA typically receives a copy of the same slip directly from the issuer and can flag a mismatch, which may lead to a reassessment adding the missed amount, potentially with interest. It's worth double-checking every slip against your own filed return.
Are capital gains from selling investments reported on a T5?
No — capital gains and losses from selling shares or other investments are calculated and reported separately from the interest and dividend income shown on a T5.
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