Tax-Free Savings Account (TFSA)

Grow your money, your way.

A Tax-Free Savings Account is a registered account that lets you earn tax-free investment income. A TFSA allows all of your investment income to grow tax-free and can complement existing registered plans (such as the RRSP and RESP).

Tax-free growth

You don't pay taxes on interest earned in your TFSA which helps you build your savings faster.

Investment options

Your TFSA is not just a savings account. It has the power to hold a variety qualified investments like stocks, guaranteed investment certificates (GICs) and mutual funds.

Catch up on unused contribution room

Contribution room accumulates each year, and you can carry unused room into future years. You also have the ability to re-contribute withdrawn contribution amounts in the following year(s).

Who is eligible for a TFSA?

All Canadian residents age 18 and older with a Social Insurance Number can open a TFSA.

How much am I allowed to contribute each year?

The 2025 TFSA contribution limit is $7,000, plus the amount of withdrawals you made in 2024 and your unused contribution room from previous years:

2009 to 2012: $5,000
2013 and 2014: $5,500
2015: $10,000
2016 to 2018: $5,500
2019 to 2022: $6,000
2023: $6,500
2024 and 2025: $7,000

If you’ve never contributed to a TFSA and you’ve been eligible since 2009, your unused contribution room for 2025 will be $102,000.

Can I open more than one Tax Free Savings Accounts (TFSA)?

Yes, you are permitted to hold more than one TFSA plan. However, regardless of the number of TFSA plans you hold, you are subject to their total annual contribution limit.

Can I contribute to my spouse or common-law spouse's TFSA?

No. However, you may give money to your spouse to contribute to his or her TFSA.

If I give funds to my spouse to contribute to his or her TFSA, who will get the income, me or my spouse?

Your spouse owns the TFSA and will earn any interest in the account.

How often can I withdraw from my TFSA?

As often as you wish, but timing may depend on what you invested in — for example GICs may not have matured.

If I withdraw money from my TFSA, can I re-contribute this withdrawn amount later on in the tax year?

Withdrawals you make in the current calendar year will be added to your unused contribution room. Amounts can't be re-contributed until the following calendar year or later.