Last updated: 11 October 2026 · Rates checked against: CRA — Line 12100, Interest and other investment income
Reviewed by Zia Shahid, Buzdy Banking Editor · Our methodology
In this guide
Canadian banks do not withhold tax from a resident's interest. You report it. The trap is a small one, and it is in the paperwork rather than the rate.
Bank interest is fully taxable and goes on line 12100 of your return.
You may not receive a T5 slip for amounts under $50 — but the income is still reportable.
CRA: "Report interest paid or credited to you ... even if you did not receive an information slip."
The $50 rule, stated correctly
Financial institutions are not required to issue a T5 for small amounts. The CRA's own wording is: "You may not receive a T5 slip for amounts under $50." Immediately before that it says to report interest paid or credited to you even if you did not receive an information slip.
The $50 threshold governs whether the bank must send paperwork. It has nothing to do with whether you owe tax. Several small accounts each paying $40 produce no slips at all and are still fully reportable.
Where it goes on the return
Interest and other investment income is reported at line 12100. Where a T5 is issued, box 13 carries the interest figure.
At what rate is it taxed?
Interest does not get the preferential treatment that eligible dividends or capital gains receive. It is added to your income and taxed at your marginal rate, federal and provincial combined.
TFSAs and RRSPs sit outside this
Interest earned inside a TFSA is not taxable and is not reported. Inside an RRSP it is not taxed as it accrues. This is the practical reason to hold interest-bearing savings inside a registered account where you have room.
Frequently asked questions
I earned $30 of interest and got no slip. Do I report it?
Yes. The absence of a T5 does not remove the obligation to report.
Where do I find the amount if there is no slip?
From your own account statements — add up the interest paid or credited during the year.
Is interest taxed like dividends?
No. Interest is taxed as ordinary income at your marginal rate, without the dividend tax credit.
What about interest in a TFSA?
Not taxable and not reported.
Sources
This is information, not tax advice. The figures above were checked against the source named at the top of this page on 11 October 2026. Tax rules change, usually with each annual budget. For a decision about your own money, speak to a qualified tax adviser in your country.
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