TFSA Taxation

Tax on Investment Income:
None. Investment income (including capital gains) earned in a TFSA is not subject to tax.
Tax on Withdrawals
None. Investors can withdraw funds from a TFSA at any time for any purpose and will not be taxed or otherwise penalized.
Eligibility for Federal Income-tested Benefits and Credits
Income earned in a TFSA and withdrawals from a TFSA will not affect eligibility for benefits and credits such as the Canada Child Tax Benefit, Employment Insurance benefits, Guaranteed Income Supplement, Old Age Security benefits, Age Credit and Goods and Services Tax Credit.