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 β residents qualify |
TFSA Contribution Room 2026
| 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
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
For Beginners: All-in-One ETFs
| 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
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 β 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 |