How much does the average Canadian have in TFSA? The average value of a tax-free savings account in 2026 is $32,234, according to estimates based on data from Canada Revenue Agency. Total contribution room alone since 2009 introduction of TFSAs amounts to $81,500. As much love as there is for TFSAs, we’re not even close to maximizing their benefit.
What is a TFSA?
The TFSA program began in 2009. It is a way for individuals who are 18 years of age or older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime.
Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn.
Administrative or other fees in relation to a TFSA and any interest on money borrowed to contribute to a TFSA are not tax-deductible.
Types of TFSAs
There are three types of TFSAs that can be offered: a deposit, an annuity contract, and an arrangement in trust.
Banks, insurance companies, credit unions, and trust companies can all issue TFSAs.
For more information about a certain type of TFSA, contact a TFSA issuer.
Who can open a TFSA?
Any individual that is a resident of Canada who has a valid SIN and who is 18 years of age or older is eligible to open a TFSA.
Note
Any individual that is a non-resident of Canada who has a valid SIN and who is 18 years of age or older is also eligible to open a TFSA. However, any contributions made while a non-resident will be subject to a 1% tax for each month the contribution stays in the account. For more information, see Non-residents of Canada.
You cannot open a TFSA or contribute to one until you turn 18. However, when you turn 18, you will be able to contribute up to the full TFSA dollar limit for that year.
How to open a TFSA
You can have more than one TFSA at any given time, but the total amount you contribute to your TFSAs cannot be more than your available TFSA contribution room for that year.
To open a TFSA, you must do both of the following:
- Contact your financial institution, credit union, or insurance company (issuer).
- Provide the issuer with your SIN and date of birth so the issuer can register your qualifying arrangement as a TFSA. Your issuer could ask for supporting documents.
Note
If you do not provide this information or provide incorrect information to your issuer, the registration of your TFSA cam be denied. If your TFSA is not registered, any income that is earned will have to be reported on your income tax and benefit return.
Self-directed TFSA
You can set up a self-directed TFSA if you prefer to build and manage your own investment portfolio by buying and selling different types of investments. For more information, contact a TFSA issuer.
Contributions
The maximum amount that you can contribute to your TFSA is limited by your TFSA contribution room.
All TFSA contributions made during the year, including the replacement or re-contribution of withdrawals made from a TFSA, will count against your contribution room.
Note
Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contribution room.
At any time in the year, if you contribute more than your available TFSA contribution room you will have to pay a tax equal to 1% of the highest excess TFSA amount in the month, for each month that the excess amount stays in your account. For more information, see Tax payable on excess TFSA amount.