Line 12100 – Interest and other investment income

Interest and other investment income form part of your total income and must be reported on your return.

Interest income includes amounts such as:

• interest
• foreign interest and dividend income
• foreign income
• foreign non-business income
• certain other investment income

These amounts are usually reported on a:

• T5 Statement of Investment Income
• T3 Statement of Trust Income Allocations and Designations
• T5013 Statement of Partnership Income

You may not receive a T5 slip if the total investment income is less than $50, but you must still report the income.

You must also report the interest on any income tax refund you received in 2025, as shown on your notice of assessment or reassessment.

Foreign income

If you received foreign interest or dividend income, report it in Canadian dollars.

In general, the foreign currency amount should be converted using the Bank of Canada exchange rate in effect on the day that the amount arises.

In certain situations, the CRA will accept an exchange rate quoted by a source other than the Bank of Canada if the rate is:

• widely available
• verifiable
• published by an independent provider on an ongoing basis
• recognized by the market
• used in accordance with well-accepted business principles
• used to prepare financial statements (if any)
• used consistently from year to year

Each of the conditions above must be met for the rate to be accepted.

Other sources of foreign exchange rates that the CRA generally accepts include:

• Bloomberg L.P.
• Thomson Reuters Corporation
• OANDA Corporation

In certain circumstances, an average of exchange rates over the relevant period of time may be used to convert foreign currency amounts. See Income Tax Folio S5-F4-C1, Income Tax Reporting Currency, and refer to this folio for information about converting foreign amounts generally.

If you paid foreign taxes on your interest or dividend income, you may be able to claim a foreign tax credit when you calculate your:

• federal tax (see line 40500)
• provincial or territorial tax (Form 428)

Do not subtract the foreign taxes from your income when you report it.

If you own an interest in a foreign investment entity or an interest in a foreign insurance policy, you may have to report investment income.

If, as a shareholder in a foreign corporation, you received certain shares in another foreign corporation, you may not have to report any amount as income for receiving those shares.

For more information about converting foreign income taxes paid, see Income Tax Folio S5-F2-C1, Foreign Tax Credit.

Bank accounts

Report interest paid or credited to you in 2025 even if you did not receive an information slip. You may not receive a T5 slip for amounts under $50.

If you hold a joint bank account, generally you report you share of the interest based on how much you contributed to the account.

Term deposits, guaranteed investment certificates, and other similar investments

Interest on these investments usually accumulates over a period longer than one year. In most cases, you do not receive the interest until the investment matures or you cash it in.

For example, interest on a compound guaranteed investment certificate (GIC) is earned monthly and automatically reinvested. The interest is paid only when the investment is cashed or matures, and not annually.

You must report the interest earned during each complete investment year, even if you did not receive a T5 slip.

For example, if you made a long-term investment on July 1, 2024, report the interest earned up to June 30, 2025 on your 2025 return. Report the interest earned from July 2025 to June 2026 on your 2026 return.

For most investments made in 1990 or later, you must report the interest each year as it is earned.

For investments made before 1990, see archived Interpretation Bulletin IT-396R, Interest Income.

Treasury bills

If a treasury bill matured in 2025, report as interest the difference between:

• the price you paid
• the proceeds of disposition shown on your T5008 slip or account statement

If you disposed of a treasury bill before maturity in 2025, you may also have to report a capital gain or loss.

For more information, see Guide T4037, Capital Gains.

Earnings on life insurance policies

Report earnings that accumulated on certain life insurance policies in the same way as other investment income, using the T5 slip provided by your insurer.

For policies purchased before 1990, you may choose to report accumulated earnings annually by notifying your insurer in writing.

Canada savings bonds (CSBs)

Interest on a regular interest (R) bond is paid annually until the bond matures or you cash it in. 

Interest on a compound interest (C) bond is not paid until you cash it in.

For both types of bonds, report the amount shown on your T5 slips.

Completing your tax return

Use your Federal Worksheet to complete the chart for line 12100, and enter the result on line 12100 of your return.

If you have a joint investment, generally you report your share of the interest based on how much you contributed. 

Forms and publications

• Income Tax Package
• Federal Worksheet
• Form T1135, Foreign Income Verification Statement
• Form T2036, Provincial or Territorial Foreign Tax Credit
• Form T2209, Federal Foreign Tax Credits
• Guide T4037, Capital Gains
• Income Tax Folio S5-F2-C1, Foreign Tax Credit
• Income Tax Folio S5-F4-C1, Income Tax Reporting Currency
• Interpretation Bulletin IT-396R ARCHIVED, Interest Income
• Interpretation Bulletin IT-510 ARCHIVED, Transfers and Loans of Property Made After May 22, 1985 to a Related Minor
• Interpretation Bulletin IT-511R ARCHIVED, Interspousal and Certain Other Transfers and Loans of Property

Related topics

• Line 22100 – Carrying charges, interest expenses and other expenses
• Line 12700 – Taxable capital gains
• Line 40500 – Federal foreign tax credit