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Non-registered accounts and capital gains

Non-registered account (taxable investments)

A regular investment account, with no limit and no tax break: what it earns is taxed, but differently for interest, dividends and capital gains.

The 2026 numbers

50%
Share of a capital gain added to your income
$361
Tax on $1,000 of interest in Québec, on a $60,000 salary
$181
Tax on a $1,000 capital gain in Québec, same salary

Numbers checked against the official sources on September 29, 2026.

What it’s for

  • Investing what goes beyond your and : there’s no limit and no penalty.
  • Keeping money within reach without using up contribution room.

Who it’s for

  • Mostly people whose TFSA is full ($7,000 of new room in 2026) and who have used their RRSP room, or don’t want to put more there.
  • Anyone who inherits or sells something and wants to invest more than their room allows.

How it works

  1. What you put in isn’t , and what you take out isn’t taxed: only what the money earns is.

  2. Interest is fully taxed, every year, even if you leave it in the account.

  3. Dividends from Canadian companies are grossed up, then reduced by the dividend : for the same income, they’re often taxed less than interest.

  4. A capital gain is only taxed when you sell, and only 50% of the gain is added to your income. A capital loss can offset your gains of the year, the three previous years or later years.

  5. Keep each investment’s cost (its adjusted cost base): it sets your gain when you sell. Your institution sends the slips each year (T5, T3, T5008, and Relevés 3 and 16 in Québec).

An example

$1,000 of investment income, by form

Same person in Québec, $60,000 salary, $1,000 more in the year. The extra tax, calculated by the engine:

Example: Québec
$1,000 of interest
$361
$1,000 of eligible dividends
$164
$1,000 capital gain ($500 taxable)
$181

In a TFSA, all three would be taxed $0. That’s why people usually fill the TFSA and RRSP before this account, and keep growth-driven investments here.

Fictional example, round numbers.

Common mistakes

  • Opening a non-registered account while TFSA room is left: the same investment would be sheltered there.
  • Losing track of what you paid: without it, you can’t work out the gain to report.
  • Selling at a loss and buying the same security back within 30 days: the loss is denied (the superficial loss rule).

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General information to help you understand, not personalized advice. Rules change: every number links to its official source.