February 4, 2026

What Is A T3 Tax Form? A Complete Guide For Canadian Taxpayers

Canadian Taxpayers

You may have heard of the term T3 tax form at least once if you live in Canada. For many taxpayers, especially first-time investors and beneficiaries, understanding the T3 form can get overwhelming and confusing. Taxaccount Canada provides a comprehensive guide that helps you understand the T3 form – what it reports, who receives it, and how it affects your tax return. All these questions are answered, along with other important information.

What Is A T3 Tax Form?

The T3 tax form, officially known as the Statement of Trust Income Allocations and Designations, is issued to Canadian taxpayers who receive income from a trust.

These trusts can be –

  • Mutual funds trust
  • Exchange-traded funds (ETFs)
  • Estate trusts
  • Income trusts
  • Some real estate investment trusts (REITs)

The T3 form reports and mentions the income you earned from these trusts during the particular year. It also mentions the type of income and any tax credits that you may be entitled to. Keep in mind that you must report this income on your personal income tax return.

Who Issues The T3 Tax Form?

The T3 slip is either issued by the trust or the financial institution that manages the estate or investment. It could be –

  • Banks
  • Investment firms
  • Estate executors or trustees
  • Mutual fund companies

The institution also sends a copy of the T3 tax form to the Canada Revenue Agency (CRA), so it is important that the information you report on your tax return matches what the CRA receives to avoid any hassle or penalty.

Who Receives The T3 Tax Form In Canada?

In Canada, you may receive a T3 tax form if you –

  • Invest in mutual funds or ETFs structured as trusts
  • Earn income through a family trust
  • Are a beneficiary of an estate
  • Hold units in income trusts or REITs

Many people don’t know that even if the income is reinvested rather than paid in cash, it is still considered taxable and will appear on your T3 tax slip.

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What Types Of Income Are Reported On A T3 Slip?

The T3 form divides income into various categories, and each of these categories is taxed differently. The most common categories are –

Interest Income

The interest earned from trust investments is fully taxable, and it is important to report it as interest income on your personal tax return.

Dividend Income

Certain trusts pay dividends from different Canadian corporations, which may qualify for the dividend tax credit. These can help reduce the amount of tax that you owe.

To know more about dividend income, you can get professional advice from a tax specialist like Taxccount Canada.

Capital Gains

Next on the list are capital gains. If the trust disposes of the assets for a profit, your share of capital gains needs to be reported on the T3 slip. Only 50% of the capital gains are taxable in Canada.

Foreign Income

Income that you earn outside of Canada is considered foreign income and must be reported on your T3 tax form. In some cases, the foreign tax that you have already paid also needs to be reported, which allows you to easily claim a foreign tax credit.

Other Income

This category includes business income or returns of capital, depending upon the structure of the trust.

When Is The T3 Tax Form Issued?

Usually, T3 slips are issued by March 31 of the year following the tax year. It is later than when T4 or T5 slips are issued, but still, many investors wait to get them before filing their taxes.

In case you file your taxes early and receive the T3 slip later, you would be required to amend your tax return; that’s why it is recommended to wait until you have all the documents with you.

To know which other documents you would require for easy tax filing, you can contact the Taxccount Canada team of experts.

How To Report A T3 Tax Form On Your Tax Return?

Keep in mind the following when filing your tax return –

  • Enter each income amount mentioned in the T3 slip in its appropriate section (like interest, dividends, capital gains, etc.)
  • You can claim eligible tax credits like the dividend tax credits or foreign income tax credits.
  • Always keep a copy of your T3 slip for your own records.

If you use software for tax filing, then most programs allow you to directly input the T3 information, and the software will do the tax calculation for you.

What Is A T3 Summary?

T3 slips and T3 summary are different, yet connected. So, in addition to individual T3 tax forms, the trusts must file a T3 summary with the CRA. It reports the total income that’s allocated to all the beneficiaries.

As a taxpayer, you don’t need to file the T3 summary yourself, but it is a part of the CRA’s verification, so be aware of it.

What Happens If You Don’t Report T3 Income?

Wondering what happens if you don’t report T3 income? The CRA also receives a copy of your T3 slip, which means if you fail to report, it may lead to –

  • Reassessments
  • Interest charges
  • Penalty for repeated omissions

Even the smallest amount must be reported accurately to avoid any ambiguity and future issues.