Tax-Free Savings Account (TFSA)
A Smarter Way to Grow Your Wealth, Tax-Free
Total Lifetime Contribution Limit (2009 - 2025)
$102,000
Annual Contribution Limit (2025)
$7,000
A Must-Have for Every Canadian
A Tax-Free Savings Account (TFSA) is one of the most powerful financial tools available to Canadians. Unlike other accounts that may tax your investment gains, a TFSA allows your money to grow completely tax-free—whether through interest, dividends, or capital appreciation.
Key Benefits of a TFSA
Tax-Free Growth Forever
Any gains made within your TFSA are yours to keep, completely tax-free.
Unrestricted Withdrawals
Withdraw money at any time without penalties or tax consequences.
Flexible & Versatile
Hold various investments like stocks, ETFs, bonds, GICs, and mutual funds.
No Expiry
No deadline for using your TFSA and no mandatory withdrawals at retirement.
Why a TFSA is Essential for Your Financial Future
Tax-Free Growth
All gains, dividends, and interest earned inside a TFSA are completely tax-free, maximizing your long-term wealth.
Flexible Contributions & Withdrawals
Contribute anytime, withdraw anytime—no penalties, no waiting periods.
Unused Contribution Room Carries Forward
If you don't max out your TFSA this year, you won't lose that room—it rolls over indefinitely.
Withdrawals Free Up Future Contribution Room
Any amount you withdraw is added back to your contribution limit the following year.
No Expiry—Use It for Life
You can contribute at 18, keep contributing through retirement, and withdraw as needed.
How the TFSA Works
Every year, the Canadian government sets a contribution limit for TFSAs. If you don't use all your room in a given year, it carries forward indefinitely, meaning you can catch up later.
2025 Contribution Limit
$7,000
Total Lifetime Room (2009 - 2025)
$102,000
Minimum Age to Contribute
18 years old
Withdrawal Rules
Tax-free, flexible
Historical TFSA Contributions & Growth
| Year | Annual Contribution Limit | Cumulative Contribution Limit | Growth Rate | TFSA Balance |
|---|---|---|---|---|
| 2009 | $5,000 | $5,000 | 6% | $5,300 |
| 2010 | $5,000 | $10,000 | 6% | $10,918 |
| 2011 | $5,000 | $15,000 | 6% | $16,873 |
| 2012 | $5,000 | $20,000 | 6% | $23,185 |
| 2013 | $5,500 | $25,500 | 6% | $30,407 |
| 2014 | $5,500 | $31,000 | 6% | $38,061 |
| 2015 | $10,000 | $41,000 | 6% | $50,945 |
| 2016 | $5,500 | $46,500 | 6% | $59,831 |
| 2017 | $5,500 | $52,000 | 6% | $69,251 |
| 2018 | $5,500 | $57,500 | 6% | $79,236 |
| 2019 | $6,000 | $63,500 | 6% | $90,350 |
| 2020 | $6,000 | $69,500 | 6% | $102,131 |
| 2021 | $6,000 | $75,500 | 6% | $114,619 |
| 2022 | $6,000 | $81,500 | 6% | $127,857 |
| 2023 | $6,500 | $88,000 | 6% | $142,418 |
| 2024 | $7,000 | $95,000 | 6% | $158,383 |
| 2025 | $7,000 | $102,000 | 6% | $175,306 |
* Assumes maximum contributions made at the start of each year with a 6% annual return
Compare Registered Accounts
| Feature | TFSA | RRSP | FHSA |
|---|---|---|---|
| 2025 Contribution Limit | $7,000 | 18% of earned income (max $31,560) | $8,000 |
| Tax on Contributions | After-tax dollars (no deduction) | Tax-deductible | Tax-deductible |
| Tax on Withdrawals | Tax-free | Taxed as income | Tax-free for home purchase |
| Withdrawal Flexibility | Withdraw anytime, no penalties | Penalties unless for HBP or LLP | Must be for first home purchase |
| Contribution Room | Accumulates from Age 18+ or when becoming a Canadian resident | Based on earned income | 1-year carry-forward |
| Age Limits | No age limit | Must convert to RRIF by 71 | Must close after 15 years |
| Recontribution Rules | Next calendar year | Lost unless HBP repayment | No recontribution allowed |
| Best Used For | Flexible savings, investments, emergency fund | Retirement savings | First home purchase savings |
* FHSA = First Home Savings Account, HBP = Home Buyers' Plan, LLP = Lifelong Learning Plan
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