Non-Registered
No contribution limit and no restrictions — but growth is taxed every year it’s realized.
The basics
A non-registered account is simply a regular, unsheltered investment account — no government limits on contributions, no deductions, and no tax-free growth. You pay tax annually on interest, dividends, and any capital gains you realize.
It’s the default option once registered room (TFSA, RRSP, FHSA, RESP) is used up, or for money you want fully liquid and unrestricted.
Different types of investment income are taxed differently inside a non-registered account, which makes what you hold — and how it’s taxed — matter more here than in a registered plan.
How much you can put in
No contribution limit, no earned-income requirement, no annual cap — you can deposit any amount at any time.
Because there’s no deduction and no cap to track, there’s no "contribution room" concept at all for a non-registered account.
How different income types are taxed (non-registered)
| Income type | 2026 treatment |
|---|---|
| Interest income | Fully taxable at your marginal rate — the least tax-efficient income type to hold here |
| Eligible Canadian dividends | Grossed up 38%, then a 15.02% federal dividend tax credit applies (plus a provincial credit) |
| Non-eligible Canadian dividends | Grossed up 15%, then a 9.03% federal dividend tax credit applies (plus a provincial credit) |
| Capital gains | Only 50% of the gain is included in taxable income (the inclusion rate) — realized only when you sell |
| Foreign income (e.g., U.S. dividends) | Fully taxable, though foreign withholding tax is usually creditable against Canadian tax owing |
Getting money out
No restrictions of any kind — withdraw any amount, at any time, for any reason. There’s no "withdrawal" event to report; only realized income and capital gains are taxed as they occur.
Capital gains are only taxed when you actually sell (or otherwise dispose of) an investment — unrealized gains on investments you continue to hold are not taxed.
What happens if you go over
Not applicable — there is no contribution limit, so there is no over-contribution penalty.
Is this a fit?
- Anyone who has maximized TFSA, RRSP, and other registered room and still wants to invest more
- Money you may need access to without any plan-specific rules or repayment obligations
- Investors comfortable managing adjusted cost base (ACB) tracking and annual tax reporting
How it fits with the rest of your plan
- A non-registered account is often the "overflow" once TFSA and RRSP room are used — many advisors recommend filling registered room first, since it shelters growth from tax entirely or defers it.
- Because dividends and capital gains are taxed more favourably than interest, asset location matters: it’s often more efficient to hold interest-bearing investments (bonds, GICs) inside a registered account, and dividend/capital-gains-generating investments in the non-registered account.
- Capital losses realized in a non-registered account can offset capital gains in the same year, or be carried back 3 years or forward indefinitely — a planning tool not available inside registered accounts.
What trips people up
- Not tracking adjusted cost base (ACB) carefully, especially with reinvested distributions, leading to an incorrect (and often overstated) capital gain when eventually reported
- Triggering the superficial loss rule — selling an investment at a loss and buying it back (or having a spouse or your RRSP/TFSA buy it) within 30 days before or after denies the loss
- Holding interest-heavy investments in a non-registered account when registered room is still available — interest is the least tax-efficient income type and belongs in a TFSA or RRSP first if possible
- Forgetting that reinvested (not just cash) distributions from mutual funds and ETFs are still taxable income in the year received, even though no cash left the account
Eligible investments
Cash, GICs, mutual funds, ETFs, individual stocks and bonds, and segregated fund contracts — the widest range of any account type, with no eligibility restrictions.
A non-registered segregated fund contract adds maturity/death benefit guarantees, potential creditor protection, and the ability to name a beneficiary directly (bypassing probate) — features a standard non-registered brokerage account doesn’t have.
An investor holding $50,000 in a non-registered account that grows by $5,000 in eligible Canadian dividends and realized capital gains combined would pay meaningfully less tax on that growth than if the same amount were earned as interest, due to the dividend tax credit and the 50% capital gains inclusion rate.
Actual outcomes depend on your income, tax situation, and the rules in effect when you contribute or withdraw. Contact Achyut for guidance specific to your situation.