have much to learn about tax. You need to learn the difference between average tax rate and marginal tax rate.  You also need to understand that not all investments are taxed the same so you simply can't make the statement that investments in your account are taxed at roughly 20%. Outside a registered account, 50% of a capital gain is added to income and taxed at your marginal rate.  Dividends are treated differently depending on whether they are considered "eligible" or not and one may be eligible for a dividend tax credit which effectively reduces one's marginal tax rate on Canadian dividends.  Interest income attracts the full marginal tax rate. So you see, a blanket statement like yours is very simplistic!