The TFSA (Tax-Free Savings Account) is a powerful tool that Canadians can use to invest and accumulate wealth tax-free. You don’t pay any tax on the income (capital gains, interest, and/or dividends) that you earn inside the TFSA. An investor can save as much as 30% of their income by simply investing inside the TFSA!
If you were 18 years of age or older in 2009 (and also a resident/citizen of Canada), you can contribute up to $102,000 into your TFSA in 2025.
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Couples can invest up to $218,000 for tax-free income!
However, the Canada Revenue Agency (CRA) just increased the contribution by $7,000 for 2026. So, starting January 1, 2026, you will have effectively $109,000 to invest tax-free! If you have a partner or a spouse who meets the same criteria, you could together invest as much as $218,000 inside your TFSAs.
If you are wondering how much income a couple’s maxed-out TFSA contribution could earn, below is a very simple two-stock, evenly split portfolio.
Here at the Fool, we suggest a much more diversified portfolio whenever you invest. However, we merely want to illustrate that it is possible to earn over $10,700 per year of tax-free income when you combine a couple’s TFSA power together.
Granite: A solid income stock for any TFSA
Firstly, you could invest in Granite Real Estate Investment Trust (TSX:GRT.UN). Granite is a safe and steady REIT to hold. It has one of the best balance sheets in the industry. It owns high-quality logistics, warehousing, and manufacturing properties across Canada, the U.S., and Europe.
The REIT has long-term leases (the average term is over six years), over 97% occupancy, and attractive prospects for long-term rental rate growth. Mid-to-high single-digit growth and a low-risk profile make this an attractive stock.
After a recent distribution increase, Granite’s stock pays a $0.2958 per unit monthly distribution. That equates to a 4.5% yield at today’s price of $77.46.
A $109,000 investment would buy 1,407 Granite units. That would earn $416.19 monthly, or $4,994.29 annualized.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Granite REIT | $77.46 | 1,407 | $0.2958 | $416.19 | Monthly |
Pembina: An infrastructure player for a couple’s TFSA
Another possible dividend stock for your TFSA allocation is Pembina Pipeline (TSX:PPL). It is one of the largest midstream and pipeline providers in Western Canada.
Over 85% of Pembina’s income is contracted. That contracted income widely supports Pembina’s dividend. Pembina expects to grow its contracted income by 4–6% annually over the coming few years. Whether it be a new LNG terminal or a data centre power project, it has plenty of options to fuel that growth.
Pembina stock pays a $0.71 per share dividend. That equates to a 5.3% dividend yield at today’s price of $53.93.
If you invested $109,000 into Pembina stock, you could buy 2,021 shares. That TFSA investment would earn $1,434.91 quarterly or $5,739.64 annualized.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Pembina Pipeline | $53.93 | 2,021 | $0.71 | $1,434.91 | Quarterly |
The Foolish takeaway
If you combined a couple’s $109,000 TFSA accounts and invested in Granite and Pembina, you could earn as much as $10,733.93 annually, completely tax-free! Both stocks are dividend growers, so there is certainly an opportunity to earn even higher income next year.
The whole point of this is to show you the power of tax-free investing inside your TFSA. Look for a diverse mix of quality dividend payers like the two above and you can stand to do very well long term.
