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, 1980 US-Canada Tax Convention, Article X (Dividends) caps the Canada tax at 15%, against a non-treaty rate of 25%. How you get the lower rate depends on Canada and your broker: some countries apply it at source once the relief paperwork is filed, others withhold the full 25% first and refund the difference on a reclaim. Verified 2026-04-19.

Per $100 gross dividend

$85.00 net

$15.00 tax after treaty relief

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

1980 US-Canada Tax Convention, Article X (Dividends): the Article X cap on portfolio dividends applies to dividends paid by a company resident in either country, so the same 15% limits Canada's tax on dividends paid to U.S. residents. Cross-check: IRS Publication 901 Table 1 (Canada row, Dividends column) lists the same rate for the U.S. side.

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.

Other payer countries for United States investors

See all payer countries for United States investors →

Other investor countries receiving Canada dividends

Canada0%

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