T5 Slip Guide 2025: Investment Income

A T5 — Statement of Investment Income — is issued by financial institutions when you earn investment income in a non-registered account. If you have a savings account, GIC, or investment account outside of a TFSA or RRSP, you may receive a T5 for interest, dividends, or other investment income earned in 2024.

No T5 for TFSA or RRSP income: Income earned inside a TFSA or RRSP is tax-sheltered and is never reported on a T5. T5 slips only apply to non-registered (taxable) investment accounts.

T5 Box-by-Box Breakdown

Box	Description	Where on T1 Return
Box 10	Actual amount of eligible dividends — dividends from Canadian public corporations	Line 12000
Box 11	Taxable amount of eligible dividends — Box 10 grossed up by 138% (multiply by 1.38)	Line 12000
Box 12	Dividend tax credit for eligible dividends — offsets the gross-up (15.0198% of Box 11)	Line 40425
Box 13	Interest from Canadian sources — bank account interest, GIC interest, bond interest	Line 12100
Box 14	Other income from Canadian sources — royalties, annuity income, etc.	Line 12100
Box 15	Foreign income — investment income from foreign sources (before foreign tax)	Line 12100
Box 16	Foreign tax paid — tax withheld by foreign governments on Box 15 income	Line 43100 (foreign tax credit)
Box 17	Royalties from Canadian sources	Line 12100
Box 18	Capital gains dividends — taxable capital gains from mutual funds or REITs	Line 17400 (Schedule 3)
Box 24	Actual amount of ineligible dividends — dividends from private corporations or small businesses	Line 12000
Box 25	Taxable amount of ineligible dividends — Box 24 grossed up by 115%	Line 12000
Box 26	Dividend tax credit for ineligible dividends (9.0301% of Box 25)	Line 40425

How the Dividend Gross-Up Works

Canadian dividend income is taxed differently from other income because corporations pay corporate tax before distributing dividends. The gross-up and dividend tax credit system is designed to prevent double taxation:

You receive an actual dividend (Box 10 or Box 24)
The CRA grosses it up to a taxable amount (Box 11 or Box 25) — this represents the pre-corporate-tax income
You pay tax on the grossed-up amount at your marginal rate
You then receive a dividend tax credit (Box 12 or Box 26) that partially offsets the extra tax from the gross-up

The net result is that eligible dividends are taxed at a lower effective rate than interest income, making Canadian dividend-paying stocks tax-efficient in non-registered accounts.

Interest Income (Box 13)

Interest income is the least tax-efficient form of investment income — it is taxed at your full marginal rate, the same as employment income. A $1,000 interest payment from a GIC is treated identically to $1,000 of employment income for tax purposes. This is why high-interest savings inside a TFSA is generally more tax-efficient for most Canadians.

When Is a T5 Issued?

Financial institutions are required to issue a T5 only if the total investment income paid to you in the year exceeds $50. If your interest income was $30 on a small savings account, the institution is not required to issue a T5 — but you are still required to report that income on your return.

Multiple T5 Slips

You may receive multiple T5 slips — one from each financial institution where you hold non-registered accounts. Enter each one separately in your tax software. The software totals them on the correct lines of your return.

Save Your Tax Refund with a No-Fee Account

When your CRA refund arrives, make sure it goes into an account that doesn't charge fees. KOHO is free to use, earns cash back, and has no monthly charges. Use code 45ET55JSYA for a bonus.

Get KOHO Free — Use Code 45ET55JSYA