Tax Free Savings Account (TFSA)
Right for you if:
You want to grow your investments tax free.
You want flexibility to withdraw your savings1, tax free, at any time.
A Tax Free Savings Account (TFSA) is a registered account in which the income you earn is completely tax-free. You don’t even pay tax when you withdraw funds.
Your TFSA can hold everything including:
Savings accounts
Mutual funds
GICs
and more.
Why a TFSA is a great way to save
Use it to save for retirement, a car, vacation, wedding, school – anything you want.
Withdraw funds at any time.1 You can put that amount back into your TFSA the next year, without affecting your contribution room.
If you don’t use up all your contribution room, the unused amount is carried forward year after year*.
Withdrawals aren’t counted as “income” so the money doesn’t affect government benefits, pensions or disability amounts.
No need to collapse the TFSA at a set age.
Contribution limits
Every year you gain contribution room in your Tax Free Savings Account. As of January 2018, you can contribute $5,500 annually in your TFSA, plus any unused contribution amount you may have accumulated. However, it’s important to make sure you don’t over contribute†.
Who can contribute?
If you’ve reached the age of majority in your province, have a social insurance number and are a tax resident of Canada, you can open a TFSA and make a contribution.
You can also contribute to your spouse's or partner’s TFSA without affecting your contribution room.
TFSA contribution amounts
| Year | Amount | Total |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
If you were 18 or older* in 2009, have been a tax resident of Canada and opened a TFSA in 2018, you could contribute up to $52,000.
Scotiabank TFSA Calculator
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Money Finder Calculator
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Watch this video that highlights the benefits and savings of a TFSA.
TFSA Declaration of Trust
TFSA Declaration of Trust
N/A | pdf : 50 KB
TFSA’s in Estate Planning
Learn More (Infographic)
Frequently asked questions
View transfer fees and other account information
(PDF: 791 kb)
To find out more, see our FAQs
Open your account today
If you over-contribute to your TFSA, then the extra amount will be taxed at 1% for every month it’s in your TFSA.
Contribution room begins accumulating from the day you turn the age of majority in your province/territory of residence.
Specific product restrictions may apply.