To stimulate dairy producers to invest in their animals' comfort, it is essential to determine any associations between cow welfare and farm productivity and profitability. We evaluated those associations at the farm level. Animal welfare data were collected on 100 Canadian tiestall dairy farms, including animal-, environmental-, and management-based measures. The productivity indicators included average milk production, SCC, culling rate and proportion of cows in third lactation or greater. The profitability indicator “margin over replacement costs” (MORC) per cow was calculated for each farm using milk and culling revenues minus replacement and dead animal disposal costs. Univariable and multivariable linear regression models were used to analyze associations between farm productivity or profitability and welfare indicators. A 1-h increase in average daily lying time was associated with an increase of 273 kg in average yearly corrected milk production per cow (P = 0.003). The percentage of obviously lame cows was modified by the milk genetic index in its association with average yearly milk production, leading to greater improvement in milk production with increasing genetic index in farms with lower lameness prevalence. Farms with a greater proportion of cows with low body condition score and stalls mostly soiled with manure had higher average somatic cell count per year (5,000 and 3,680 per %; P ≤ 0.001). Farms with greater variability in their average herd lying time had lower proportion of cows in their third lactation or greater (6% per h; P = 0.007). Farms with higher average MORC per cow (higher benefits) had significantly lower prevalence of stalls soiled with manure ($7 per %; P = 0.001) and with very wet bedding ($16 per %; P = 0.018), and longer average daily lying time ($147 per h; P = 0.017). The farm’s MORC per cow was also associated with the interaction between lameness prevalence and milk genetic index. These results show a complex relationship between farm profitability and animal welfare and that improving some aspects of animal welfare on tie-stall farms is beneficial for farm's productivity and profitability.