Tax-Free Savings Account (TFSA)

Once you meet the eligibility requirements, you can make regular contributions to your TFSA throughout the year without needing to have an earned income. However, it is your responsibility to make sure you do not go over your maximum contribution limit.

Any over-contributions are subject to penalties and interest. The Canada Revenue Agency sets the yearly contribution limit (see table below).

Unused contribution room is accumulated every year to a maximum limit. Any withdrawals from your account will be added back as contribution room in the next year.
 

 

Taxation year	TFSA annual limit	TFSA cumulative limit
2025	$7,000	$102,000
2024	$7,000	$95,000
2023	$6,500	$88,000
2022	$6,000	$81,500
2021	$6,000	$75,500
2020	$6,000	$69,500
2019	$6,000	$63,500
2018	$5,500	$57,500
2017	$5,500	$52,000
2016	$5,500	$46,500
2015	$10,000	$41,000
2014	$5,500	$31,000
2013	$5,500	$25,500
2012	$5,000	$20,000
2011	$5,000	$15,000
2010	$5,000	$10,000
2009	$5,000	$5,000

Any individual person (not trusts or corporations) who meets the following three requirements is eligible to open a TFSA:
 

• A Canadian resident
• 18 years of age or older
• Holds a valid Canadian Social Insurance Number

There is no maximum age limit, and you do not need employment income to open or hold a TFSA.

There are no restrictions on the way you use your TFSA funds (contributions and earnings), so they are a great choice for your mid- to long-term savings goals. TFSAs are best used for savings that can grow over months and years, but with no tax at withdrawal and minimal fees they are quickly accessible when needed (note, funds in GICs are available when their term matures).