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Estimate how much your Tax-Free Savings Account (TFSA) could grow over time and the potential tax savings.
Where you live determines the estimate of your provincial marginal tax rate.
Used to estimate your combined federal & provincial marginal tax rate.
Maximum $102,000 (2024 TFSA contribution limit).
Making regular contributions increases your potential for greater returns.
Maximum 15%. This is the annual increase as a percentage of your investment.
Maximum 50 years. The longer you invest, the more your savings may grow through compound returns.
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Estimated tax savings compared to a non-registered account at your marginal tax rate (25%).
Everything you need to know about Tax-Free Savings Accounts
A Tax-Free Savings Account (TFSA) is a registered account where your investments can grow tax-free. Unlike an RRSP, contributions are not tax-deductible, but all withdrawals—including investment earnings—are tax-free.
All investment income earned in a TFSA—including interest, dividends, and capital gains—is completely tax-free, even when withdrawn. This makes TFSAs particularly valuable for long-term growth.
The annual TFSA contribution limit for 2024 is $7,000. Unused contribution room accumulates from 2009 (when TFSAs were introduced) onward, and any withdrawals create additional contribution room in the following calendar year.
TFSAs can hold various investments, including cash, GICs, stocks, bonds, mutual funds, and ETFs. The flexibility to invest in growth-oriented vehicles while maintaining tax-free status makes TFSAs powerful wealth-building tools.