Non-Reg
Non-Registered Investment Account
No limits, no restrictions, and complete flexibility, with smart tax treatment on capital gains and dividends.
Unlimited
No contribution limits
50%
Capital gains inclusion rate
As of 2025
Anytime
Withdraw with no restrictions
Dividend
Tax credit on eligible Canadian dividends
When you've maxed everything else, or just want no restrictions
A non-registered account is any investment account without the special registered status of a TFSA, RRSP, or FHSA. There are no contribution limits and no restrictions on withdrawals. You invest what you want, when you want, and access it anytime.
The trade-off is taxation. Unlike registered accounts, income earned inside a non-registered account is taxable. But the tax treatment isn't as harsh as it may seem. Capital gains are only 50% taxable, meaning you only pay tax on half of what you made. Eligible Canadian dividends get a dividend tax credit that significantly reduces their effective rate. And interest income, while fully taxable, is only triggered when earned.
Strategic investors use non-registered accounts alongside their TFSA and RRSP, holding tax-efficient investments like Canadian dividend stocks and index ETFs here, while keeping fully taxable income (like bonds and GICs) inside registered accounts.
Capital gains vs. ordinary income
Interest income
40% effective
Fully taxable at marginal rate
Eligible dividends
~23% effective
Dividend tax credit reduces the rate
Capital gains
20% effective
Only 50% of the gain is included
Based on 40% marginal tax rate, 2025 rules
Why non-registered accounts matter
Once your registered accounts are full, non-registered accounts are your next layer of investment.
No Contribution Limits
Once your TFSA and RRSP rooms are maxed out, non-registered accounts have no cap. Invest as much as you want, whenever you want.
Complete Flexibility
No withdrawal restrictions, no conversion requirements, no lock-in periods. You can access your money at any time for any reason.
Favourable Capital Gains Treatment
Only 50% of a realized capital gain is included in your taxable income. If you're in the 40% bracket, your effective rate on a capital gain is just 20%.
Dividend Tax Credit
Eligible Canadian dividends receive a dividend tax credit, which reduces the effective tax rate on dividend income, often making it more efficient than regular interest income.
How non-registered investing works
Unlimited potential. Tax-aware strategy required.
1
Open a brokerage account
Any bank or online brokerage offers non-registered accounts. There's no paperwork involving the CRA, just open the account and start investing.
2
Invest any amount in any eligible security
No limits, no restrictions on what you can hold. Stocks, ETFs, bonds, GICs, mutual funds, options, REITs, the full investment universe is available to you.
3
Report investment income annually
Unlike registered accounts, income earned in a non-registered account is taxable each year. Interest is fully taxable. Dividends get the dividend tax credit. Capital gains are only 50% taxable, and only when you realize (sell) them.
4
Use strategic timing to manage gains
You choose when to sell and realize a capital gain. Deferring a sale to a lower-income year, or harvesting losses to offset gains, are powerful strategies available in non-registered accounts.
5
Withdraw whenever, however much you want
There are no withdrawal restrictions. Pull out money tax-free from the contribution portion; any gains above your adjusted cost base will trigger a taxable event.
Non-registered account rules
No contribution rules, but tax rules apply to everything earned inside.
Contribution Limit
None
Tax on Interest Income
Fully taxable as ordinary income
Tax on Eligible Canadian Dividends
Grossed up and taxed, with dividend tax credit applied
Capital Gains Inclusion Rate
50% of the gain is added to taxable income
As of 2025, prior proposed increase to 66.67% was cancelled
Tax on Unrealized Gains
None, only taxed when you sell
Adjusted Cost Base (ACB)
Tracked per investment to calculate your actual gain or loss
Withdrawal Restrictions
None
Tax-Loss Harvesting
Allowed, realize losses to offset gains
Eligible Investments
Stocks, ETFs, GICs, bonds, mutual funds, options, REITs, and more
Foreign Withholding Tax
Applies to dividends from foreign companies, credit available on tax return
Principal Residence Exemption
Capital gain on your home may be sheltered if it's your principal residence
How different income types are taxed
Income Type | Tax Treatment | Example (40% bracket) |
|---|---|---|
Interest income | 100% included in taxable income | $1,000 interest → $400 tax |
Capital gain (50% inclusion) | 50% included in taxable income | $1,000 gain → $200 tax |
Eligible Canadian dividend | Grossed up + dividend tax credit | $1,000 dividend → ~$230 tax (approx.) |
Return of capital | Reduces your ACB, not taxed yet | $1,000 ROC → $0 tax today |
How Optiml uses this
Optiml manages your non-registered account strategically.
Non-registered accounts have accrued capital gains that must be carefully managed. Optiml models exactly when and how to realize those gains throughout retirement, smoothing the tax impact across years rather than triggering a massive capital gains hit at death.
© 2026 Optiml. All rights reserved.