T5, T3, T5008: A Complete Guide to Your Canadian Investment Tax Slips

The T5 Slip: Interest, Dividends, and Other Investment Income

The T5 – Statement of Investment Income is the most widely received slip. Your bank, broker, or bond issuer sends it to report amounts paid to you during the calendar year. It typically covers:

• Interest income (Box 13): GIC interest, bond interest, high-interest savings account interest.
• Ordinary dividends (Box 10) and eligible dividends (Box 24): payments from Canadian corporations, which qualify for the dividend tax credit.
• Foreign dividends (Box 15): dividends from non-Canadian companies, taxed as ordinary income (and often subject to foreign withholding tax).

T5 slips must be issued by February 28 of the following year. You'll receive a separate slip from each financial institution that paid you at least $50 in qualifying income during the year.

The T3 Slip: Trust, ETF, and Mutual Fund Distributions

The T3 – Statement of Trust Income Allocations and Designations applies to income flowing from a trust: mutual funds, exchange-traded funds (ETFs), income trusts, mutual fund trusts, and similar entities.

A T3 can include:

• Interest, Canadian dividends, or foreign income allocated from the fund
• Capital gains allocated by the fund (Box 21)
• Return of capital (Box 42) — not immediately taxable, but it reduces your adjusted cost base (ACB)

The key timing issue: T3 slips have a filing deadline of the end of March (90 days after the trust's tax year-end). In practice, many T3s arrive between March 15 and March 31. If you file in early March, there's a real chance one or more T3s haven't arrived yet — which can lead to a reassessment or penalties.

The T5008 Slip: Securities Dispositions

The T5008 – Statement of Securities Transactions is issued by your broker whenever you sell (or are deemed to have sold) securities: stocks, ETFs, options, etc. Key boxes include:

• Box 20 – Proceeds of disposition: the amount you received on sale.
• Box 21 – Cost or book value: the cost your broker has on file.

Here is the most common mistake investors make: trusting the figure in Box 21. Most Canadian brokers do not account for return of capital (T3 Box 42), reinvested distributions (DRIP), or purchases made at multiple price points over time. The number can be incomplete — or left blank entirely. It is your responsibility to calculate your exact ACB, or to work with an accountant who can. The T5008 gives you your sale proceeds; it does not replace careful cost-tracking. See our ACB and tax guide for a step-by-step breakdown.

Quebec Equivalents: Relevé 3 and Relevé 16

If you are a Quebec resident, you will also receive provincial slips issued by Revenu Québec:

• Relevé 3 (RL-3): the provincial equivalent of the T5 — interest income and dividends. The amounts generally match those on the T5, but the box numbers and layout differ.
• Relevé 16 (RL-16): the provincial equivalent of the T3 — trust and fund distributions. Same timing applies: expect it in late March, and it includes Quebec's share of capital gains and trust income.

There is no Quebec equivalent of the T5008. Revenu Québec handles capital gains through the provincial capital gains schedule (TP-274), but the disposition amounts still come from the federal T5008.

Common Mistakes and Best Practices

Here are the most frequent traps to avoid at tax time:

• Filing before all your T3s have arrived. If you hold ETFs or mutual funds, wait until the end of March to ensure nothing is missing. Amending a return costs time — and sometimes money if you use a professional.
• Treating the T5008 Box 21 figure as your real cost basis. This number is often incomplete. Keep a record of every purchase, every reinvested distribution, and every return of capital you've received.
• Assuming all accounts generate slips. Investment income earned inside a TFSA, RRSP, or RRIF generally does not generate taxable slips (income is sheltered or deferred). If you receive a slip for one of those accounts, check with your institution.
• Overlooking foreign withholding tax. If you hold U.S. stocks in a non-registered account, the withholding tax (typically 15%) appears on your T5 — you can claim a foreign tax credit on your federal return.
• Misunderstanding return of capital. T3 Box 42 is not taxable in the year received, but it reduces your ACB. If your ACB reaches zero, any further return of capital is immediately taxable as a capital gain. This trips up many ETF investors, especially those holding income-focused funds.

Frequently asked questions