TFSA Eligibility
| Requirement | Details |
|---|
| Age | 18+ (19+ in BC, NB, NL, NS, NT, NU, YT) |
| Residency | Canadian resident |
| SIN | Valid Social Insurance Number required |
| Citizenship | Not required — residents qualify |
TFSA Contribution Room 2026
Before opening, check your TFSA contribution room:
| Year | Limit Added | Cumulative (from 2009) |
|---|
| 2009-2012 | $5,000/year | $20,000 |
| 2013-2014 | $5,500/year | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016-2018 | $5,500/year | $57,500 |
| 2019-2022 | $6,000/year | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
| 2025 | $7,000 | $102,000 |
| 2026 | $7,000 | $109,000 |
If you turned 18 in 2009+: Your room starts from the year you turned 18.
Step-by-Step: How to Open a TFSA
Step 1: Choose Where to Open
| Option | Best For | Pros | Cons |
|---|
| Online brokerage | DIY investors | Lowest cost, most control | Self-directed |
| Bank | Simple savings | Easy, familiar | High fees, limited options |
| Robo-advisor | Hands-off | Automated, diversified | Management fee |
| What You Need | Notes |
|---|
| Social Insurance Number (SIN) | Required for tax reporting |
| Government ID | Driver’s license, passport |
| Address | Current Canadian address |
| Employment info | Employer name, occupation |
| Banking info | For funding the account |
Step 3: Open the Account Online
Most platforms take 10-15 minutes:
- Go to platform’s website
- Click “Open an Account” or “Get Started”
- Select TFSA as account type
- Enter personal information
- Verify identity (upload ID or answer questions)
- Link funding source
- Submit application
Approval time: Instant to 1-3 business days
Step 4: Fund Your TFSA
| Method | Time | Notes |
|---|
| Bank transfer (EFT) | 1-3 days | Most common |
| Wire transfer | Same day | May have fee |
| Bill payment | 1-2 days | Some brokerages |
| Cheque | 5-7 days | Slowest |
Step 5: Start Investing
Once funded, you can:
- Buy individual stocks
- Buy ETFs
- Buy mutual funds
- Hold cash (HISA)
- Purchase GICs
Best Places to Open a TFSA
See our full comparison of best TFSA accounts in Canada.
For DIY Investors (Self-Directed)
| Platform | Commission | Best Feature |
|---|
| Wealthsimple Trade | $0 | Free trades |
| Questrade | $0 ETF buys | Low cost |
| Interactive Brokers | $1 min | Advanced features |
| National Bank Direct | $0 | Free everything |
| Desjardins Online | $0 | Free trades |
For Hands-Off Investors (Robo-Advisors)
| Platform | Fee | Minimum |
|---|
| Wealthsimple Invest | 0.4-0.5% | $1 |
| Questwealth | 0.25% | $1,000 |
| CI Direct Investing | 0.4-0.6% | $0 |
| RBC InvestEase | 0.5% | $0 |
| BMO SmartFolio | 0.4-0.7% | $1,000 |
For Simple Savings (High-Interest)
| Provider | Rate | Type |
|---|
| EQ Bank | 2.75% | Savings account |
| Wealthsimple Cash | 4.0%* | Cash account |
| Tangerine | 0.5-5%* | Savings (promo) |
| Simplii | 0.4-5%* | Savings (promo) |
*Rates as of 2026; promotional rates vary.
What to Invest In Your TFSA
| Risk Level | ETF | Stocks/Bonds |
|---|
| Aggressive | VEQT/XEQT | 100/0 |
| Growth | VGRO/XGRO | 80/20 |
| Balanced | VBAL/XBAL | 60/40 |
| Conservative | VCNS/XCNS | 40/60 |
Simplest approach: Buy one ETF and contribute regularly.
For Dividend Investors
| Strategy | Examples |
|---|
| Dividend ETFs | VDY, XDV |
| Individual stocks | Banks, utilities |
| REITs | CAR.UN, REI.UN |
For Savings Goals
| Goal | Investment |
|---|
| Emergency fund | High-interest savings |
| Short-term (1-3 years) | GICs, bonds |
| Medium-term (3-10 years) | Balanced portfolio |
| Long-term (10+ years) | Growth portfolio |
Common TFSA Mistakes
| Mistake | Problem | Solution |
|---|
| Over-contributing | 1% penalty/month | Check room on My Account |
| Day trading | CRA may tax as business | Invest passively |
| Holding US stocks | 15% withholding tax | Consider Canadian ETFs |
| Transferring wrong | Withdrawal + contribution | Use transfer form |
| Not investing | Cash earns little | Buy ETFs or GICs |
Transferring an Existing TFSA
Want to move your TFSA? See our guide on how to transfer a TFSA.
How to Transfer
| Step | Action |
|---|
| 1 | Open account at new institution |
| 2 | Request transfer form |
| 3 | Provide old account details |
| 4 | New institution handles transfer |
| 5 | Wait 1-4 weeks |
Transfer vs Withdraw
| Method | Contribution Room | Best When |
|---|
| Transfer | Not affected | Moving institutions |
| Withdraw + redeposit | Uses room twice if same year | Never do this |
Always transfer — don’t withdraw and redeposit.
TFSA vs Other Accounts
| Feature | TFSA | RRSP | FHSA |
|---|
| Contribution limit | $7,000/year | 18% of income | $8,000/year |
| Tax on contribution | No deduction | Deductible | Deductible |
| Tax on growth | Tax-free | Tax-deferred | Tax-free |
| Tax on withdrawal | Tax-free | Taxable | Tax-free (home) |
| Withdrawal rules | Anytime | Penalties apply | Home purchase |
| Best for | Flexibility | High income, retirement | First home |
TFSA Rules to Know
Withdrawals
| Rule | Details |
|---|
| Withdraw anytime | No penalty |
| Room restored | January 1 of following year |
| No minimum hold | Can withdraw next day |
Contributions
| Rule | Details |
|---|
| January 1 | New room available |
| Over-contribution | 1% penalty per month |
| Carry forward | Unused room accumulates |
| Track carefully | CRA My Account shows room |
On Death
| Beneficiary Type | What Happens |
|---|
| Successor holder (spouse) | Takes over TFSA tax-free |
| Beneficiary | Receives cash, tax-free |
| Estate | Distributed per will |
Check Your TFSA Room
On CRA My Account
- Log into My Account
- Go to “RRSP and TFSA”
- View “TFSA contribution room”
Note: CRA data may not reflect 2026 contributions until your return is processed.
Calculate Manually
| Formula |
|---|
| Total room earned (based on age) |
| - Total contributions ever made |
| + Total withdrawals from previous years |
| = Current TFSA room |