Canadian Tax on U.S. Investment


There are lucrative investment opportunities for Canadians in America. Learn more about investing in the US and how it’s taxed in Canada. Canadians are taxed on their international income, so it’s important to understand cross-border investment implications.

Since Canadian residents are taxed on their worldwide income, you must report US dividends, interest, capital gains, and other forms of investment income on your T1 tax income return. Earnings will need to be converted to Canadian dollars, to do this: use the annual average rate or the rate on the day of the transaction – whatever benefits you.

Account types

Earned income in a registered account, such as registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs), is not taxable while it remains in the account. Non-registered accounts, such as a savings account, any interest earned inside the account is fully taxable in the year it is earned.

Two types of US investment incomes

  1. US dividends

    What is a dividend?
    A dividend is a payment a corporation makes to share profits with its stockholders.

    Tax treatment of dividends

    The US withholding tax rate for Canadian investors is 15% on US dividends. This rate is a lower 15% than what is charged to other foreign investors, per our Canada-US Tax Treaty. To ensure this lowered withholding rate you must submit Form W-8.

    If there are any withholding taxes, they will be deducted from any US dividends you earn before they are paid to you. Due to the Canada Revenue Agency’s (CRA) protection against double taxation, Canadians can claim a foreign tax credit for the full 15% of the US withholding tax applied to the dividend payments. 

    To avoid the withholding tax, keep your US dividend stocks in a retirement account like RRSP or locked-in retirement account (LIRA).

  2. Interest

    What is interest income?

    Interest income is earned money from investments that pay interest like savings accounts or certificates of deposits.

    Tax treatment of interest income

    All interest income must be declared on your annual tax return in Canadian dollars, according to the CRA. requires that. Generally, interest income earned in the US has no withholding tax for a Canadian resident.

    There are many forms of investments for Canadians in America each with its own implications. Contact us to learn about tax planning for your US investments.

For more information on tax implications on your U.S. investments, reach out to us directly, and we can help you out.

57 thoughts on “Canadian Tax on U.S. Investment

  1. Pingback: what happens if you miss a dose of amoxicillin

  2. Pingback: cozaar blood pressure medication

  3. Pingback: losing weight on contrave

  4. Pingback: citalopram drug interactions

  5. Pingback: flexeril side effects

  6. Pingback: flomax bedwetting

  7. Pingback: how to deal with augmentin side effects

  8. Pingback: depakote withdrawals

  9. Pingback: ddavp infusion side effects

  10. Pingback: zoloft vs effexor

  11. Pingback: what does diltiazem do

  12. Pingback: ahmed mh and ezetimibe

  13. Pingback: what is diclofenac sodium topical gel used for

  14. Pingback: amitriptyline for insomnia

  15. Pingback: how much aspirin can i give my dog

  16. Pingback: allopurinol high

  17. Pingback: aripiprazole dosage

  18. Pingback: buspar dosage

  19. Pingback: celebrex study

  20. Pingback: ashwagandha and rhodiola

  21. Pingback: does bupropion cause hair loss

  22. Pingback: celecoxib

  23. Pingback: rash from augmentin

  24. Pingback: remeron and ativan

  25. Pingback: acarbose pharmacodynamics

  26. Pingback: abilify long acting injectable

  27. Pingback: gastroparesis and semaglutide

  28. Pingback: actos neutros

  29. Pingback: robaxin and percocet high

  30. Pingback: pantoprazole (protonix)

  31. Pingback: repaglinide compresse

  32. Pingback: venlafaxine 75mg

  33. Pingback: voltaren gel use while pregnant

  34. Pingback: tizanidine muscle relaxer

  35. Pingback: stromectol tablet 3 mg

  36. Pingback: spironolactone other names

  37. Pingback: tamsulosin prescribed to women

  38. Pingback: vildagliptin vs sitagliptin ppt

  39. Pingback: synthroid theraflu

  40. Pingback: oxycodone cost pharmacy

  41. Pingback: levitra 20mg price in canada

  42. Pingback: online pharmacy no prescription needed percocet

  43. Pingback: cialis online pills

  44. Pingback: sildenafil use in females

  45. Pingback: buy levitra pills online

  46. Pingback: sildenafil 100mg how long does it last

  47. Pingback: tadalafil tablets ip 20 mg

  48. Pingback: ivermectin 5 mg price

  49. Pingback: sildenafil 20 mg canada

  50. Pingback: where can i buy generic viagra in usa

  51. Pingback: ivermectin price canada

  52. Pingback: donde comprar vardenafil

  53. Pingback: cost of ivermectin lotion

  54. Pingback: generic name for ivermectin

  55. Pingback: ivermectin 3 mg tablet dosage

  56. Pingback: ivermectin 6mg dosage

  57. Pingback: tadalafil dosage bodybuilding

Comments are closed.