Calculator · Canada

US withholding tax on dividends: TFSA, RRSP or taxable?

See how much of a US dividend a Canadian keeps in a TFSA, RRSP/RRIF, RESP, FHSA or non-registered account under the 15% treaty withholding rate.

The border takes its share before the dividend reaches you, except in an RRSP or RRIF. In a TFSA, that 15% doesn't come back.

US holdings

Value of US-listed dividend holdings (CAD)

Their dividend yield

Years held (cumulative cost, no growth)

US withholding by account

US dividends per year

$1,500

Lost each year in a TFSA

$225

TFSA cost over 20 yrs

$4,500

Account	Withheld	Kept	Recoverable?
TFSA	$225	$1,275	No
RRSP / RRIF	$0	$1,500	Nothing withheld
Non-registered (taxable)	$225	$1,275	Usually, as a foreign tax credit
RESP	$225	$1,275	No
FHSA	$225	$1,275	No

Assumes treaty documentation (usually Form W-8BEN) is on file; without it the US statutory rate is 30%. RRSP/RRIF exemption under treaty Article XXI; TFSA, RESP and FHSA treatment is the widely applied reading of the treaty, which does not list them as retirement plans.

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

Enter the value of US dividend-paying holdings and their yield (or the yearly US dividends directly).
Compare what each account type keeps after US withholding.
For non-registered accounts, remember the withholding can generally be claimed as a foreign tax credit, so the true cost depends on your Canadian tax.

Method and limits

US withholding on dividends paid to a Canadian resident: 15% under Article X of the Canada–US tax convention when treaty documentation (usually Form W-8BEN) is on file; 30% statutory rate without it.
RRSPs and RRIFs are generally exempt under Article XXI of the convention. TFSAs, RESPs and FHSAs are not treated as retirement plans for this purpose, so 15% is withheld and cannot be recovered.
This applies to US-listed shares held directly. A Canadian-listed fund that holds US shares has the withholding happen inside the fund, and an RRSP does not avoid it in that structure.

Frequently asked questions

Can I claim back US tax withheld in my TFSA?

No. The foreign tax credit applies to income reported on your Canadian return; TFSA income is not reported, so withholding in a TFSA is a permanent cost.

Why is nothing withheld in my RRSP?

Article XXI of the Canada–US tax convention exempts dividends paid to trusts operated exclusively to provide pension or retirement benefits, which covers RRSPs and RRIFs. Brokers apply this when their records identify the account as an RRSP/RRIF.

Does this apply to US-listed ETFs too?

The 15% treaty rate applies to dividends from US-listed shares and US-listed funds held directly. The structure of a fund (where it is listed and what it holds) determines where withholding happens.

Primary sources

Rules checked October 31, 2026. Tax rules and rates change; confirm current details on the official pages above.