A T3 slip reports income allocated to a beneficiary from a trust or estate, so the beneficiary can report it on their personal tax return.
When a trust or estate allocates income to a beneficiary rather than keeping it, it issues a T3 Statement of Trust Income Allocations and Designations. The beneficiary reports that income, which may retain its character as dividends, capital gains or other income, on their T1. Income kept in the trust is taxed in the trust instead.
T3 slips also come from mutual funds and ETFs held outside registered accounts, reporting distributions of income and capital gains. Because T3s are issued later than most slips (the trust filing deadline is 90 days after year-end), they are a common reason to wait before filing a personal return.
A family trust allocates $20,000 of dividend income to a beneficiary. The trust issues a T3 showing the dividends, and the beneficiary reports them on their personal return with the dividend tax credit.
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Canada runs three systems. The federal GST is 5% for 2026 and applies nationally. Five participating provinces fold a provincial share into one harmonised rate: 13% in Ontario, 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 14% in Nova Scotia since 1 April 2025. Others add their own tax to the 5% GST, giving 12% in British Columbia and Manitoba, 11% in Saskatchewan and 14.975% in Quebec. Alberta and the territories charge 5% only.
The GST rate is 5%, unchanged since 1 January 2008 and current for 2025 and 2026. It reaches every province and territory, but in five provinces it is folded into the HST: you charge 13% in Ontario, 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 14% in Nova Scotia, down from 15% on 1 April 2025. In Alberta, the Northwest Territories, Nunavut and Yukon, 5% applies alone.
The T1 General is the Canadian personal income tax and benefit return. It reports your income, deductions and credits for the calendar year and works out the tax owing or the refund, with provincial forms and schedules attached to it. Download the package for your province of residence from canada.ca, or let certified software build it for you. Filed copies and assessment summaries for past years stay available in CRA My Account. The 2025 return was due 30 April 2026.
It stays out of taxable income but often counts elsewhere. Amounts such as most lottery winnings and income earned inside a TFSA are not taxed at all. Some other receipts are exempt from tax yet still have to be reported, because the CRA uses net income and family net income to test benefits and credits. So an amount that costs you no tax can still reduce a benefit. Lenders and landlords apply their own definitions again.
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Reviewed and fact-checked by Udit Gupta
Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA
Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. Big 4 trained at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia, he founded his accounting practice in 2014 to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.
The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023
Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.
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