How Much Would You Need in a TFSA to Earn $750 a Month Tax-Free?

The Tax-Free Savings Account (TFSA) is a popular account in Canada among young investors and retirees. Any returns earned in the TFSA from qualified investments are exempt from Canada Revenue Agency taxes.

Moreover, these returns do not count towards your taxable income in retirement, which helps residents avoid pension benefit clawbacks. So, let’s see how you can use the TFSA to begin a passive income stream of $750 per month, which is tax-free for life.

How much do you need in a TFSA to earn $750 a month?

A $750 monthly goal amounts to $9,000 a year. One low-cost strategy to create a passive income stream is to own monthly dividend stocks with attractive payouts.

At a blended dividend yield of 5%, you would need to invest $180,000 to earn $900 annually. However, if the yield rises to 10%, the investment required falls to $90,000.  

The Canada Revenue Agency (CRA) set the 2026 TFSA limit at $7,000. For someone eligible to contribute to the TFSA since 2009, the maximum cumulative contribution room is much higher at $109,000.

Which monthly dividend stocks could pay $750 a month?

Two Canadian names pay monthly and yield far above the average dividend stock.

GO Residential REIT: The Manhattan landlord

GO Residential Real Estate Investment Trust (TSX: GO.U) owns high-end apartment buildings in New York. It pays a monthly dividend of $0.053 per unit, which translates to a yield of 8.8%.

The REIT ended Q2 with a committed occupancy rate of 99.6%. Its adjusted funds from operations (AFFO), a key cash flow measure for REIT’s, stood at US$14.7 million, which indicates a payout ratio of 68.5%.

On a per-unit basis, GO Residential reported an AFFO of US$0.23 against a US$0.25 forecast as new units were sold before new buildings added income. Comparatively, the quarterly dividend payment stood at US$0.16 per share.

GO is buying a large apartment portfolio from H&R, adding 35 properties and about 13,300 suites. CEO Joshua Gotlib said the deal includes US$51 million of guaranteed AFFO support over two years.

Decisive Dividend: The small business acquirer

Decisive Dividend (TSXV: DE) is an acquisition-holding company. It acquires and operates small-to-medium-sized manufacturing businesses.

The company’s diversified portfolio includes subsidiaries that produce industrial machinery, wear parts, agricultural equipment, commercial vehicle components, and hearth products across Canada and the United Kingdom.

It employs a “buy, build, and hold” strategy, targeting legacy-minded business owners to provide sustainable monthly dividends to its shareholders. Decisive Dividend pays a dividend of $0.05 a month and currently offers a yield of 7.1%.

In Q3 2026, it reported revenue of $40.8 million, an increase of 20% year over year. It was the second-best quarter in company history. However, higher steel costs meant that adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose only 3%.

CEO Jeff Schellenberg was candid about the fix, stating:

The payout ratio sits at 83% over 12 months, which is not too high given peer comparisons.

What does a $750 a month TFSA portfolio look like?

You need to invest around $56,600 in each TSX dividend stock to earn $750 a month in passive income. The cumulative investment rises to $113,200, which is higher than the TFSA contribution room of $109,000.

Now, a $109,000 investment split equally between the two stocks pays around $722 a month, which can be reinvested to increase future payouts and help you reach the $750 target within a few years.

What risks could cut your monthly TFSA income?

GO depends on merger approval and carries heavy debt, making it a high-risk option if interest rates increase over the next 12 months. Decisive Dividend has a high payout ratio and is wrestling with rising costs amid a challenging macro environment.