Tax Free Savings Account


A tax-free savings account allows Canadian taxpayers aged 18 or older to earn investment income tax-free. You simply invest your money into eligible investment vehicles and watch those savings grow tax-free throughout their lifetime.

There are no restrictions on the way TFSA funds (contribution and earnings) may be used. You can purchase a car, renovate a home, start a small business, take a family vacation or just save for a rainy day.

Visit Canada Revenue Agency's website for information on finding your unused contribution room.

Features of a TFSA Expand/Collapse

  • Any individual person (no trusts or corporations) who is a Canadian citizen, 18 years or older and holds a valid Social Insurance Number is eligible to open a TFSA
  • Capital gains and other investment income earned in a TFSA will not be taxed and withdrawals will be tax-free
  • The TFSA dollar limit (contribution limit) for 2017 is $5,500
  • Unused contribution room can be carried forward to a subsequent year and withdrawals will also create contribution room for the subsequent year
  • Withdrawals can be made anytime, for any reason (depending on investment), and all withdrawals are tax-free- subject only to the type of investment
  • You are not required to have earned income to contribute
  • You can provide funds to your spouse for him or her to contribute without being subjected to income attribution rules
  • Choose from a range of investments like mutual funds, savings accounts and term deposits (GICs)