Tax Free Savings Account (TFSA)

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.

Right for you if:

You want to grow your investments tax free.
You want flexibility to withdraw your savings¹, tax free, at any time.

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 2020, you can contribute $6,000 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
2018	$5,500	$57,500
2019	$6,000	$63,500
2020	$6,000	$69,500