This website is intended for residents of Canada.

Tax-Free Savings Account

Invest today and never pay tax.

Contribute as much as $5,500 every year

The annual contribution limit has changed a few times since TFSAs were launched in 2009. This year’s limit is $5,500. And thanks to the lifetime carry-forward room, new TFSA investors may be able to contribute as much as $57,500 in 2018.

Best of all: any growth in the value of TFSA investments is tax-free. You won’t be taxed while your savings grow and you won’t be taxed when you withdraw.

  • Withdrawals are tax-free.
  • Unused contribution room accumulates and can be used in subsequent years.
  • TFSA assets can be used as collateral for a loan.
  • Withdrawals don’t affect eligibility for such benefits as Old Age Security, Guaranteed Income Supplement or the Child Tax Benefit.

TFSA carry-forward rule

Every year, you can contribute up to the TFSA dollar limit for the year PLUS any previous unused contribution room AND the amount you withdrew last year. It’s a long sentence, but a simple rule. Here’s an example:

Let’s say you’ve maximized your TFSA contributions every year and last year you withdrew $2,000 to help pay for a vacation. This year, you can contribute $5,500 PLUS the $2,000 you withdrew last year, for a total of $7,500.