The Tax-Free Savings Account (TFSA) is an account that provides tax benefits for saving in Canada. Investment income, including capital gains and dividends, earned in a TFSA is not taxed, even when withdrawn.
The TFSA limit determines how much you can deposit in your Tax-Free Savings Account each year. Here are the limits for 2017:
|Year||TFSA Annual Limit||TFSA Cumulative Limit|
If you don’t have a TFSA and you’ve never contributed before, then you could open one and contribute a maximum of $52,000.