TFSA: Top Canadian Stocks for Big Tax-Free Capital Gains

While dividend stocks get a lot of attention these days, the real magic of a TFSA (Tax-Free Savings Account) happens when quality growth stocks can grow and multiply. Inside the TFSA, capital gains are not required to be reported, and they are never taxed. Even when you withdraw from the account, there is no reporting or tax required.

You want your biggest gainers to be completely tax-free

That makes it the ideal place for stocks that can create substantial gains for shareholders. You only get so much contribution room in your TFSA, so you want to choose the best value creators imaginable.

Small-cap stocks can be an interesting place to look for these kinds of TFSA gains. A small-cap stock is often in the early stages of its growth trajectory, which means you have a long runway to compound.

Below, we’ll take a look at three top Canadian stocks that could deliver outsized TFSA returns in the years ahead.

VitalHub: An up-and-coming software play for a TFSA

One small-cap stock that looks interesting today is VitalHub (TSX:VHI). It has a market cap of $569 million today. In August, its market cap was closer to $800 million.

However, its stock has declined 21% in the past six months. That presents opportunities because its valuation looks attractive again.

VitalHub provides software solutions for public health systems in Canada, the U.K., and Australia. The company has been growing rapidly. For the first nine months of 2025, revenues are up 62%, and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) are up 49%.

VitalHub has over $100 million of cash to invest into further acquisitions, so it appears to still have a substantial growth runway. The pullback presents an attractive TFSA entry point.

Firan: A top aerospace growth stock

Firan Technology (TSX:FTG) is another intriguing stock for a TFSA. This $300 million stock is up nearly 500% over the past five years. The combination of a cheap valuation and steady growth made it a great investment over that time.

Firan provides aerospace parts focused on cockpit components, circuit boards, and aftermarket hardware/software and sensors. Since the pandemic, demand for new, more efficient airplanes has soared (literally).

The major airplane manufacturers have nearly a decade of backlog. That provides a massive growth tailwind for Firan. It has done a good job of making intelligent acquisitions that position it with new customers and new geographies.

Certainly, Firan’s valuation is not as attractive today as even a year ago. However, it is a much better business than five years ago. Likewise, it still trades at a substantial discount to other U.S. peers, so it still has room to catch up.

Topicus: A top serial acquirer for a TFSA

With a market cap of $10.6 billion, this final TFSA stock may not be considered a small-cap. Yet, it is oddly the largest company listed on the TSX Venture Exchange. It is Topicus.com (TSXV:TOI).

Topicus is a serial acquirer of niche software companies across Europe. These tend to be mission-critical service providers that have very sticky revenues. It’s delivered double-digit growth this year, and it has been very effectively deploying its spare capital.

Its stock is down 27% in the past six months. It is trading at one of its most compelling values since it listed in 2021. If you have an extended time horizon, Topicus is an excellent stock to compound your wealth tax-free inside a TFSA.  

The post TFSA: Top Canadian Stocks for Big Tax-Free Capital Gains appeared first on The Motley Fool Canada.

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More reading

• The Best TSX Stocks to Buy in January 2026 if You Want Both Income and Growth
• 1 Magnificent Canadian Tech Stock Down 38% to Buy and Hold for Decades
• Top Canadian Stocks to Buy With $2,000 Right Now
• The No-Brainer Canadian Stocks I’d Buy With $5,000 Right Now
• Here’s the CPP Contribution Your Employer Will Deduct in 2026 

Fool contributor Robin Brown has positions in Topicus.com and Vitalhub. The Motley Fool has positions in and recommends Firan Technology Group, Topicus.com, and Vitalhub. The Motley Fool has a disclosure policy.