Tax payable on TFSAs
Generally, interest, dividends, or capital gains earned on investments in a TFSA are not taxable either while held in the account or when withdrawn.
There are, however, certain circumstances under which one or more taxes may be payable with respect to a TFSA. The following sections provide information and examples of when and how these taxes are payable, and by whom.
Normally, in most TFSA situations, there is no tax payable, and therefore, a TFSA return is not required; however, where one or more of TFSA taxes are applicable a TFSA return is required must be filled out and sent by June 30, of the year following the calendar year in which the tax arose.
Services and information
- TFSA excess letter and proposed return explained
TFSA excess amount correspondence explained, waiver of taxes, and what should you do if you disagree with your assessment
- Tax payable on excess TFSA amount
Tax owing on over contributions made to your TFSA
- Tax payable on non-qualified investments
Implications when TFSAs contain non-qualified investments
- Tax payable on prohibited investments
Implications when TFSAs contain prohibited investments
- Tax payable on non-resident contributions
Implications of contributing to your TFSA while being a non-resident of Canada
- Tax payable on an advantage
Implications of benefits, loans or debts in relation to a TFSA
Forms and publications
- Form RC243, Tax-Free Savings Account (TFSA) Return
- Form RC243-SCH-A, Schedule A – Excess TFSA Amounts
- Form RC243-SCH-B, Schedule B – Non-Resident Contributions to a Tax-Free Savings Account (TFSA)
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