23
Markets2h 2m ago

U.S. dividends are subject to an unavoidable 15% foreign withholding tax inside a TFSA.

Canada, United States

Who
Canadian investors, Canada Revenue Agency (CRA), Internal Revenue Service (IRS)
What
U.S. dividends are subject to an unavoidable 15% foreign withholding tax inside a TFSA.
When
Wed, 17 Jun 2026 14:00:00 GMT · 2h 2m ago
Where
Canada, United States ·
Why
Under current tax treaty rules, the United States does not recognize the TFSA as a retirement account.
The Frontline Impact

How this affects you

This withholding tax can slightly reduce compounding over long periods, particularly affecting those with high-yield U.S. dividend stocks or income-focused ETFs, though TFSAs still offer significant tax-free growth benefits.

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