Calculator · Canada
Which account for which dividends? TFSA, RRSP or non-registered
The TFSA, RRSP and non-registered placement that minimizes this year's tax and US withholding on Canadian and US dividends and interest.
US dividends like the RRSP, interest likes any shelter, and eligible Canadian dividends mind least where they sit. Let's put numbers on it.
What you hold
Room and tax
Lowest-drag placement for this year
Tax + withholding, optimized
$321
If filled in the order listed
$850
Saving vs listed order
$529
All non-registered
$1,898
| Holding | TFSA | RRSP / RRIF | Non-registered |
|---|---|---|---|
| Canadian dividend stocks | $40,000 | $0 | $80,000 |
| US dividend stocks | $0 | $80,000 | $0 |
| GICs and bonds | $60,000 | $0 | $0 |
| Income type | TFSA | RRSP / RRIF | Non-registered |
|---|---|---|---|
| Canadian eligible dividends | $0.00 | $0.00 | $8.92 |
| Canadian non-eligible dividends | $0.00 | $0.00 | $22.38 |
| US dividends | $15.00 | $0.00 | $31.48 |
| Interest (GICs, bonds, cash) | $0.00 | $0.00 | $31.48 |
- US dividends usually belong in the RRSP: the Canada–US treaty exempts them from US withholding there, while a TFSA loses 15% for good.
- Interest is taxed at your full marginal rate outside registered accounts, so it gains the most from shelter; eligible Canadian dividends gain the least, thanks to the dividend tax credit.
- This looks at this year's tax only. RRSP withdrawals are taxed later as ordinary income whatever they hold; growth expectations, liquidity and contribution room also matter. Estimate, not advice.
Estimate for education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Results depend on your inputs and the simplifications listed under Method. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.
How to use it
- List what you hold by income type, with values and yields.
- Enter the TFSA and RRSP space you have for these holdings.
- Choose your province and other taxable income.
- Read the lowest-drag placement and how much it saves against filling accounts in the order listed.
Method and limits
- Drag per dollar of income by type and account for 2026: non-registered uses your marginal tax on that income type (eligible dividends with gross-up and credits; US dividends with 15% withholding and a simplified foreign tax credit; interest at full rates); TFSA loses 15% on US dividends; RRSP/RRIF has no tax or withholding now (treaty exemption).
- The optimizer solves the placement exactly as a min-cost flow over dollars, subject to the TFSA and RRSP space you enter.
- This year's tax only: RRSP withdrawals are taxed later as ordinary income whatever they hold, and growth, liquidity and contribution rules also matter.
Frequently asked questions
Should US dividend stocks go in my RRSP?
For US-listed shares held directly, the Canada–US treaty generally exempts dividends paid to an RRSP or RRIF from US withholding, while a TFSA loses 15% that can't be recovered. That usually makes the RRSP the cheapest place for them, all else equal.
Why does interest get sheltered first?
Interest is taxed at your full marginal rate outside registered accounts, while eligible Canadian dividends get the dividend tax credit. Each dollar of shelter saves more tax on interest.
Primary sources
- CRA — Line 12000 and 12010: Taxable amount of dividends
- CRA — 5000-D1 Federal Worksheet (2025): gross-up and dividend tax credit rates
- CRA — 2025 provincial and territorial worksheets (5001-D to 5014-D): dividend tax credit rates
- CRA — Tax rates and income brackets for individuals (current year)
- Canada–United States Tax Convention, consolidated text (Department of Finance Canada)
- IRS — Private letter ruling 200810013 (RRSPs and RRIFs under Article XXI(2) of the treaty)
- CRA — Line 40500: Federal foreign tax credit (Form T2209)
Rules checked October 31, 2026. Tax rules and rates change; confirm current details on the official pages above.