CRA-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dividends, or capital gains earned on investments in a TFSA are not taxable either while held in the account or when withdrawn.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 could 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 payable 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.