General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
Money that grows and can be withdrawn without you ever paying tax on it. TFSA and qualifying FHSA withdrawals are tax-free.
Technical definition
Tax-free describes investment growth and withdrawals that are not subject to any income tax. In Canada, TFSAs (ITA 146.2) and qualifying FHSA withdrawals provide fully tax-free treatment — contributions are made with after-tax dollars, and neither the growth nor the withdrawals are included in taxable income.
Examples
- • You invest $7,000 in your TFSA and it grows to $9,500. You withdraw the full $9,500 and report $0 on your tax return.
- • A qualifying FHSA withdrawal of $40,000 for a first home purchase is completely tax-free.
Keep exploring
About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.