A Tax-Free Savings Account (TFSA) is one of the most popular government-sponsored savings plans. It is a registered savings account into which you invest after-tax dollars. Because you are investing after-tax dollars, you do not pay taxes on the invested earnings when you withdraw money from the TFSA.

In 2025, you can contribute a maximum of C$7,000 per year of after-tax dollars. As of 2025, the total maximum contribution is $102,000 after-tax dollars for someone who has never contributed, but who has been 18 years or older since the program started in 2009.

Unused contributions can be accumulated. If you withdraw money from your TFSA, you can re-contribute the amount in subsequent years.

You can invest in a range of common options (e.g., cash, Guaranteed Investment Certificates, stocks and bonds, ETFs, mutual funds, etc.).

For information see: The Government of Canada’s Tax-Free Savings Account Guide