TFSA Calculator

What is the 2024 TFSA contribution limit?

The 2024 TFSA annual contribution limit is $7,000. Cumulative lifetime room since 2009 is $95,000 for someone who has been a resident since age 18+. The annual limit is indexed to inflation in $500 increments: 2009–2012: $5,000; 2013–2014: $5,500; 2015: $10,000; 2016–2018: $5,500; 2019–2022: $6,000; 2023–2024: $6,500/$7,000.

What can I hold in a TFSA?

A TFSA can hold most investments: cash, GICs, stocks (Canadian and foreign), ETFs, mutual funds, bonds, and options. US dividends paid inside a TFSA are subject to 15% US withholding tax (the Canada-US treaty doesn't apply to TFSA). For this reason, US dividend-paying stocks are often better held in an RRSP (where the treaty applies).

What happens if I over-contribute to a TFSA?

Over-contributions are taxed at 1% per month on the excess amount until withdrawn. The CRA tracks TFSA contribution room and will send a letter if you over-contribute. To avoid over-contribution errors, wait until January 1 to re-contribute withdrawn amounts (the room returns on Jan 1, not immediately after withdrawal).

TFSA or RRSP: which is better for me?

TFSA is generally better when: you're in a low tax bracket now, you expect higher income/taxes in retirement, you're retired and don't need RRSP deductions, or you want flexible access to funds. RRSP is better when: you're in a high tax bracket now, you expect lower income in retirement, or you're buying a first home (Home Buyers' Plan). Ideally, maximize both.