Dividend tax · United States investor → Canada dividends
United States investor receiving Canada dividends: 15% withholding
If you're a United States resident receiving dividends from a Canada-domiciled company, the Canada tax authority withholds 15% at source under 1980 US-Canada Tax Convention, Article X (Dividends). The statutory non-treaty ceiling is 25% — the bilateral treaty saves you 10 percentage points. Verified 2026-04-19.
Per $100 gross dividend
$85.00 net
$15.00 withheld at source
Treaty rate
15%
vs 25% statutory (saves 10pp)
Verification state
verified
last verified 2026-04-19
Treaty reference
1980 US-Canada Tax Convention, Article X (Dividends)
15% on direct portfolio investment. 5% available to corporate shareholders with ≥10% ownership.
Source citation
IRS Publication 901 Table 1 (Canada row, Dividends column)
Treaty rates shown are typical statutory withholding rates for direct portfolio investment. Actual rates depend on holding period, ownership percentage, investor type (individual vs. pension vs. mutual fund), limitation-on-benefits tests, and other factors. Consult a qualified tax professional for your specific situation.
United States resident tax treatment
U.S. persons taxed on worldwide dividend income; qualified dividends at 0/15/20%; ordinary dividends at ordinary rates; foreign tax credit may offset foreign withholding.