A Registered Retirement Savings Plan (RRSP) allows savings for retirement to grow tax- deferred in a special plan registered with the Canada Revenue Agency (CRA).
TFSA (Tax-Free Savings Account) - A simple way to save
January 07, 2026
If you don’t have a Tax-Free Savings Account (TFSA), you may be missing one of the most important personal savings vehicles for Canadians.
Keep more of your money in your pocket
If you don’t have a Tax-Free Savings Account (TFSA), you may be missing one of the most important personal savings vehicles for Canadians.
About TFSAs
A TFSA is an account that helps you set aside money for short and long-term financial goals. Just like its name, it helps you save money, tax free – for as long as you choose.
Canadian residents aged 18 (or 19 in some provinces) or older can open a TFSA. Any capital gains or income earned in the account is typically tax-free, even when money is withdrawn, as there are situations for which taxes could be payable.
To learn more about TFSAs, visit cra-arc.gc.ca/tfsa.
TFSA fast facts
- More than 18-million Canadians had opened TFSAs by 2023,1 with $618-billion in assets.2 (Canada Revenue Agency, 2025 stats)
- The average TFSA was worth $33,534 in 2023.3 (Canada Revenue Agency, 2025 stats)
- If you’ve been eligible every year since 2009 and have never contributed, your total TFSA contribution limit for 2026 is $109,000.
Important features
- TFSAs can hold many types of assets – cash, stocks, bonds, mutual funds and more. And they can grow tax-free for life. This means that any interest, dividends and capital gains earned in your TFSA are never taxed, even when withdrawn.
- You can withdraw your TFSA savings at any time, and for any reason. TFSAs are useful for saving for things you want to buy in the short term – a car, for example, or a vacation. Alternatively, it can be used for longer term goals, such as saving for retirement. Withdrawals made in the current year are added back to your contribution room in the following year.
- The annual TFSA contribution rate is set each year by Canada Revenue Agency (CRA). For 2026, you will be able to contribute an additional $7,000 to your TFSA.
- Unused contributions – you can carry forward any unused contribution amount to future years.
- It’s flexible – there’s no maximum age for contributing to a TFSA.
To discuss how you can save with a TFSA or to learn more, contact your advisor.
*If you have invested in foreign investments, tax will be withheld by the foreign government when income is paid on the investment, or something to that effect.
1 https://www.canada.ca/content/dam/cra-arc/prog-policy/stats/tfsa-celi/2023/tbl01-en.pdf
2 https://www.canada.ca/content/dam/cra-arc/prog-policy/stats/tfsa-celi/2023/tbl03-en.pdf
3 https://www.canada.ca/content/dam/cra-arc/prog-policy/stats/tfsa-celi/2023/tbl03b-en.pdf
Information contained in this article is provided for information purposes only and is not intended to provide specific financial, tax, insurance, investment, legal or accounting advice and should not be relied upon in that regard and does not constitute a specific offer to buy and/or sell securities. You should always consult your financial advisor or tax specialist before undertaking any of the strategies discussed in this article to ensure that all elements and your personal circumstances are taken into consideration in developing your individual financial plan. Information contained in this article has been compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to its timeliness or accuracy.
