Most people think of income as something they work for wages, salaries, or freelance payments. That’s what your T4 captures. But as your financial life grows, something interesting happens:
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You start earning money without working
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That’s what the T5: Statement of Investment Income is all about. It’s the tax slip that tells the CRA you earned money passively from your investments.
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And while the T4 is noisy and visible — tied to effort and hours — the T5 is quiet. It’s the background hum of financial progress.
What Is a T5?
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A T5 slip is issued by financial institutions (like your bank, investment firm, or credit union) to report investment income you earned in a given year. This could include:
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Interest (from savings accounts, GICs, bonds)
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Dividends (from Canadian or foreign companies)
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Certain other investment earnings
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If you earned more than $50 in investment income from a source, that institution is required to send you a T5.
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Think of the T5 as a signal:
“Your money worked for you this year — and now it’s time to share that with the CRA.”​
The Key Boxes: What They Mean
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T5s can look complex, but the core parts are surprisingly straightforward:
Box 13 – Interest Income
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​This is what you earned in interest from savings or fixed-income investments.
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Boxes 24 & 25 – Dividends from Canadian Corporations
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These come with a special gross-up and tax credit system that reflects taxes already paid by the company on your behalf.
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Box 15 – Foreign Income
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Investment income from outside Canada, which may also show foreign tax paid (Box 16) that could be used as a foreign tax credit.
Each of these boxes doesn’t just report a number — it represents an opportunity. It shows you’re beginning to move from earning money with your time to earning money with your money.
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The Psychology Behind the T5
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We tend to respect hard work more than passive income. Why? Because it feels earned. But the goal of any healthy financial life is to eventually have assets that work harder than you do.
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The T5 reminds you that money is more than a tool — it’s a partner. It doesn’t sleep. It doesn’t take vacations. And it doesn’t complain.
But it does need to be taxed.
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That’s where many people stumble. Investment income is easy to ignore because it feels abstract. It's often not deposited as cash, just numbers growing in an account. But come tax time, the CRA sees it — and expects you to report it.
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Why It Matters
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Reading your T5 isn't just about avoiding tax mistakes. It’s about developing the mindset of someone who understands how wealth is built:
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Slowly
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Silently
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By consistently using money to create more money
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The T5 is your financial progress report. If the T4 shows what you earned, the T5 shows what you built.
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Bottom Line
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The T5 slip may seem small or technical, but it tells a powerful story: that you're starting to make the transition from income-dependent to asset-supported. And that’s not just a tax concept it’s a shift in how you relate to money.
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Pay attention to it. It’s a sign you’re heading in the right direction.