TFSA Investors: How Couples Can Earn $10,700 Per Year in Tax-Free Passive Income

The TFSA (Tax-Free Savings Account) is a powerful tool that Canadians can use to invest and build wealth tax-free. You do not pay tax on the income (capital gains, interest and/or dividends) you earn within the TFSA. An investor can save as much as 30% of their income by simply investing within the TFSA!

If you were 18 years or older in 2009 (and are also a resident/citizen of Canada), you can contribute up to $102,000 to your TFSA in 2025.

Couples can invest up to $218,000 for tax-free income!

However, the Canada Revenue Agency (CRA) has just increased the contribution by $7,000 for 2026. So as of January 1, 2026, you essentially have $109,000 to invest tax-free! If you have a partner or spouse who meets the same criteria, you can jointly invest as much as $218,000 in your TFSAs.

If you’re wondering how much income a couple’s maximum TFSA contribution could generate, here’s one terribly simple, evenly distributed two-stock portfolio.

Here at The Fool, we recommend a much more diversified portfolio when investing. However, we just want to illustrate that it is possible to earn more than $10,700 per year in tax-free income when you combine a couple’s TFSA power.

Granite: A solid income share for any TFSA

First, you could invest in it Granite Real Estate Investment Trust (TSX:GRT.UN). Granite is a safe and stable REIT to hold. It has one of the best balance sheets in the industry. It owns high-quality logistics, warehousing and manufacturing facilities in Canada, the US and Europe.

The REIT has long-term leases (the average term is over six years), an occupancy rate of over 97% and attractive prospects for long-term rental growth. Mid to high single digit growth and a low risk profile make this an attractive stock.

Following a recent distribution increase, Granite’s stock pays a monthly distribution of $0.2958 per unit. That equates to a 4.5% yield at the current price of $77.46.

An investment of $109,000 would purchase 1,407 granite units. That would yield €416.19 monthly, or €4,994.29 annually.

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.

More than 85% of Pembina’s income is contractually determined. These contracted earnings broadly support Pembina’s dividend. Pembina expected to grow his contracted income by 4 to 6% per year in the coming years. Whether it’s a new LNG terminal or a data center energy project, there are plenty of opportunities to drive that growth.

Pembina stock pays a dividend of $0.71 per share. That equates to a dividend yield of 5.3% at the current price of $53.93.

If you invest $109,000 in Pembina stock, you can buy 2,021 shares. That TFSA investment would return $1,434.91 each quarter or $5,739.64 annually.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY
Pembina Pipeline	$53.93	2,021	$0.71	$1,434.91	Quarterly

The silly takeaway

If you were to combine a couple’s $109,000 TFSA accounts and invest in Granite and Pembina, you could earn as much as $10,733.93 annually, completely tax-free! Both stocks are dividend growers, so there’s certainly an opportunity to deliver even higher earnings next year.

The whole point of this is to show you the power of tax-free investing within your TFSA. Look for a diverse mix of high-quality dividend payers like the two above and you can do very well in the long run.