🇨🇦 Canada · Guide

TFSA — Complete Overview

A Tax-Free Savings Account lets your investments grow completely tax-free — no tax on growth, and no tax on withdrawal.

2025Last reviewed 24 Jul 2026

Annual contribution limits

Unlike RRSP, contributions are not tax-deductible — but growth and withdrawals are entirely tax-free.

Withdrawals don't count as taxable income and don't affect income-tested benefits (like OAS or GST credit)
Withdrawn amounts add back to your contribution room — but only the following calendar year
No mandatory withdrawal age, unlike RRSP/RRIF

Calculate your cumulative TFSA contribution room.

VERIFY

Over-contributing results in a 1% per month penalty tax on the excess. Verify your exact room on CRA My Account before contributing.