The Tax-Free Savings Account (TFSA) was established by the Canadian government in 2009 as a “flexible savings vehicle” for Canadians. When you add funds to a TFSA, you are making contributions from income you’ve already paid tax on. Your contributions grow tax-free while they’re in the TFSA account, and you aren’t taxed on any withdrawals. For 2023, you can save up to $6,500 in your TFSA, regardless of your income. This contribution room grows each year if you don’t use it. The total potential contribution room since the TFSA was created in 2009 is $88,000.
