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Tax-Free Savings Account (TFSA)

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What is a TFSA?

TFSA stands for Tax-Free Savings Account. It’s a registered account that allows your investments—like stocks, ETFs, bonds, GICs, and more—to generally grow tax-free. Unlike an RRSP, contributions aren't tax-deductible, but, since you already paid tax on your contributions, withdrawals and investment gains are generally tax-free. Your TFSA contribution room has been accumulating since 2009 (or from the year you turned 18), even if you haven’t opened an account yet.

How a TFSA Works

Here's how to get your TFSA working for you right away, from opening your account to making the most of your contribution room over time.

Open your account and fund it

Open and fund your TFSA in minutes. Once the money's in, you're free to invest and move it across assets whenever you see fit. Your contribution room is set from day one.

Choose your investments

Stocks, ETFs, mutual funds, GICs, bonds, and options are all eligible inside a TFSA. You decide which qualifying investments to hold, how much to put in. No advisor required.

Invest tax-free

Generally, any interest, dividends, or capital gains earned inside your TFSA on qualified investments are not subject to tax. Nothing to declare, no slips to file.

Withdraw anytime, for any reason

Withdraw freely without affecting your taxable income or benefits like OAS, GIS, or the Child Benefit.Legal Disclaimer footnote 1 No qualifying purpose, no paperwork, no penalty.

Get your contribution room back the following year

Withdrawals are not lost room. They come back on January 1 of the following year. Re-contribute before then only if you have the available room to cover it. Otherwise, the CRA charges 1% per month on the excess.

Not sure how much room you have? Check your available TFSA contribution room anytime through CRA My Account at canada.ca, or use our Contribution Room Calculator below.

See TFSA contribution rules ↓

Benefits of a TFSA

$0 tax on investment income

Growth and withdrawals are generally tax-free on your investments.

Withdraw anytime, for any reason

No forms, no waiting, no questions asked.

No impact on government benefits

Your withdrawals don't count as income.

Your unused contribution room carries forward forever

Miss a year? Your room is still there.

No age limit

Unlike an RRSP, there’s no deadline to convert or close the account.

Invest in what you want, not just savings rates

Hold stocks, ETFs, bonds, GICs, fixed income, options and more, all in one account.

Numbers to Know for 2026

Tax on earnings and qualifying withdrawals Legal Disclaimer footnote 3
$0
annual contribution limit
$7,000
Lifetime contribution room if eligible since 2009
$109,000

Last updated:

The rules behind the numbers

Unused room carries forward

Any contribution room you don't use automatically carries forward to future years, with no deadline.

Withdrawals add room the following year

When you withdraw, that amount is added back to your contribution room on January 1st of the following year. Contributing again before January 1st, if you've already attained your lifetime contribution limit, could trigger a 1% monthly CRA penalty.

Who can
contribute

Contribution room for Canadians with a valid SIN starts at 18, but some provinces only allow opening and contributing to an account at the age of majority of 19. You don't need earned income, unlike an RRSP.

How to check your room

The CRA tracks your contribution room. Check it anytime through CRA My Account at canada.ca.

How much TFSA contribution room do you have?

You may have more room than you think. Your TFSA limit has been stacking up since 2009 (or since you turned 18), whether or not you've ever contributed. Enter your details to see your number.

You’ll be eligible to open a TFSA in [birth_year + 18]. Come back then to calculate your contribution room. Please enter a valid birth year.

$00,000

Please enter your lifetime contributions.

$00,000

Please enter your previous year withdrawals.
Calculate

For illustrative purposes only. Actual results may vary.
This calculator provides an estimate based on TFSA annual limits. Your actual available room depends on contributions made, withdrawls taken, and whether you were a Canadian resident in each year. Check your exact room through CRA My Account.

$XX,XXX

Available TFSA contribution room today, based on annual limits since 2009

Why Choose a Self-Directed TFSA at RBC Direct Investing?

Expand your investing knowledge with resources designed to help you take control:

Filter and choose investments using:

Receive guest access to our Online Investing platform with a risk-free Practice AccountLegal Disclaimer footnote 5. It’s a great way to practice buying and selling different investments before investing your own money. Free for RBC Online Banking and Direct Investing clients.

Note: Practice TFSAs are not available. However, you can open a Practice Account as a cash, margin or RRSP account and still experience what it's like to trade online.

Enjoy benefits like real-time streaming quotesLegal Disclaimer footnote 6 and pre-market and after-hours trading at no additional cost:

RBC Direct Investing mobile app showing TFSA account balance, holdings and available contribution room for the current tax year

Investments You Can Hold in Your TFSA

Enjoy total freedom to research and pick the investments that meet your needs.

Stocks

ETFs

Mutual Funds

GICs

Bonds

Options

Explore Investments

TFSA FAQs

A Tax-Free Savings Account (TFSA) is a registered investment plan that lets your earnings (like interest, and ) from qualified investments grow tax-free. Invest for any goal—from a new car to retirement—and never pay any Canadian tax on qualifying withdrawalsLegal Disclaimer footnote 1

In 2026, the contribution limit is $7,000. You can make contributions throughout the year or in a lump sum. In addition to the annual contribution limit, your unused contribution room is carried forward indefinitely. Plus, withdrawals are added back to your contribution room the following year.

No, investment income and withdrawals are not included as income for tax purposes, which means they will not affect your eligibility for income-tested government benefits and credits such as the Canada Child Tax Benefit, the Canada Workers Benefit, the Guaranteed Income Supplement, Old Age Security (OAS) or the Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit.

You can hold a wide range of investments in your TFSA, including cash, guaranteed investment certificates (GICs), bonds, stocks, exchange-traded funds (ETFs), mutual funds and options. All investments held in a TFSA must be qualified investments.Legal Disclaimer footnote 1
Contribution room for Canadians with a valid SIN starts at 18, but some provinces only allow opening and contributing to an account at the age of majority of 19. You don't need to have earned income to contribute, unlike an RRSP.
There are no annual administration fees for a TFSA at RBC Direct Investing. Standard trading commissions apply when you buy or sell investments within your account.Legal Disclaimer footnote 2
No. Any withdrawn room doesn’t return until January 1st of the following year, but you can still contribute against your remaining contribution room. Contributing before then, when you’re already at your limit, triggers a 1% CRA penalty per month on the excess contribution.
Transfer funds from your RBC bank account, set up a pre-authorized plan, or transfer from another institution. Once funded, buy and sell qualifying investments directly in the account.
Check your available room through CRA My Account on canada.ca. The CRA updates the site in the Spring with the previous calendar year's information.

Images presented are for illustrative purposes and may not represent the actual web pages within the RBC Direct Investing online investing site.