Tax centre

Understand tax context before reading net return

Gains, losses, distributions and registered accounts: the concepts that change what an investor actually keeps.

Updated July 17, 2026 · Canadian educational resource

Short answer: tax treatment depends on income type, account type, province and personal circumstances. Pre-tax return alone is not enough to compare two investments.

Identify the income type

Income	Example	Tracking need
Interest	Bond, GIC or savings account	Slip and tax year
Canadian dividend	Eligible or non-eligible distribution	Dividend type and applicable credit
Foreign dividend	Distribution from a foreign company	Withholding and account type
Capital gain	Sale above adjusted cost base	Proceeds, ACB and transaction costs
Fund distribution	ETF or mutual fund	Reinvestment, return of capital and slips

ACB needs a history, not a screenshot

In a non-registered account, adjusted cost base changes with purchases, some reinvested distributions, returns of capital and fees. The average price displayed by a broker can help, but the taxpayer remains responsible for the records.

Keep confirmations, slips and statements. A partial sale also requires allocating ACB to the units sold.

Separate educational calculation from tax filing

A calculator can illustrate the effect of a marginal rate or compare income categories. It does not know every deduction, loss carry-forward, provincial rule or taxpayer circumstance.

Important: verify current rules with the CRA and a qualified professional. WealthWise pages explain concepts; they do not prepare a tax return.

Tax guides and calculators

Explore the precise concept, then use a calculator to test general assumptions.

Gains

Capital gains tax in Canada

Understand the calculation, losses and registered accounts.

ACB

Adjusted cost base Canada

Track purchases, distributions and partial sales.

Losses

Superficial loss rule

Understand the 30-day window and affiliated persons.

Dividends

Canadian dividend tax credit

Separate eligible and non-eligible dividends.

Calculator

After-tax return calculator

Compare interest, dividends and gains using assumptions.

Calculator

Capital gains tax calculator

Estimate a general result from a gain and marginal rate.

Sources and method

Rules, limits and fees change. The primary sources below were reviewed on July 17, 2026. Always verify the official version before acting.

Canada Revenue Agency — capital gains — capital-gain rules and reporting
Canada Revenue Agency — investment income — interest, dividends and other income
Canada Revenue Agency — TFSA — official account rules

Read the WealthWise editorial methodology

Frequently asked questions

Does WealthWise prepare my tax return?

No. The tools illustrate general scenarios and support record tracking. They do not replace tax software or a qualified professional.

Is the broker’s ACB always sufficient?

Not necessarily, especially when the same security is held across multiple non-registered accounts or distributions affect ACB. The taxpayer must keep records.

Are gains inside a TFSA taxable?

Generally, eligible income and gains inside a TFSA are not taxed on withdrawal. Special rules can apply to non-qualified investments or business-like trading activity.

Why compare after-tax return?

Two investments with the same gross return can leave different amounts after tax because of income type, account and personal tax circumstances.

Connect return with the right account type

Keep TFSAs, RRSPs and non-registered accounts distinct while reading the consolidated portfolio.

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