TFSA Contribution Room Calculator
The TFSA annual contribution limit for 2024 was $7,000 which increased the maximum lifetime contribution room limit to $95,000 (if you were 18 years or older in 2009). The annual contribution limit for 2024 increased by $500 over the $6,500 annual limit in 2023 (The annual contribution room is indexed to inflation and rounded to the nearest $500).
Lifetime TFSA contribution limits and maximum room (2009 - 2024)
| Year (When you turned 18) | Year (When you were born) | Annual Contribution Limit | Lifetime Contribution Limit |
|---|---|---|---|
| 2024 | 2006 | $7,000 | $7,000 |
| 2023 | 2005 | $6,500 | $13,500 |
| 2022 | 2004 | $6,000 | $19,500 |
| 2021 | 2003 | $6,000 | $25,500 |
| 2020 | 2002 | $6,000 | $31,500 |
| 2019 | 2001 | $6,000 | $37,500 |
| 2018 | 2000 | $5,500 | $43,000 |
| 2017 | 1999 | $5,500 | $48,500 |
| 2016 | 1998 | $5,500 | $54,000 |
| 2015 | 1997 | $10,000 | $64,000 |
| 2014 | 1996 | $5,500 | $69,500 |
| 2013 | 1995 | $5,500 | $75,000 |
| 2012 | 1994 | $5,000 | $80,000 |
| 2011 | 1993 | $5,000 | $85,000 |
| 2010 | 1992 | $5,000 | $90,000 |
| 2009 or earlier | 1991 or earlier | $5,000 | $95,000 |
How does our TFSA Room Calculator work?
Our TFSA contribution room calculator allows you to determine how much you can contribute to your tax-free savings account in determining your total available contribution room. This calculator takes into account what year you were born in, how much you have contributed to your TFSA as well as withdrawals made in the current year and past years. This will help ensure you can make full contributions while not exceeding your available contribution limit.
How to calculate TFSA contribution room?
Your TFSA contribution room limits how much you are able to contribute to your tax-free savings account before additional contributions are considered over contributions which will incur a penalty. Your TFSA contribution room will start to accumulate in the year you turn 18 (or from 2009 if you were 18 or older in 2009) – even if you have not filed a tax return or opened a TFSA. You still need to be considered a resident of Canada during these years for contribution room to continue to accumulate.
Withdrawals are an important factor in calculating your total contribution room. Whatever you have withdrawn in the prior year can be added back in your current years contribution room calculation. This means that when you initial contributions grow in your TFSA, you are able to withdraw them, and re-contribute that same amount withdrawn in future years. This also means that when your investments grow within your TFSA this does not decrease the amount of contribution room you have available.
If you have not opened a TFSA account, your contribution room will be the total of the annual limits for the years in which you were eligible to participate in the program. For those who already have TFSA accounts, the transaction details are filed by financial institutions and reported to the CRA once a year to advise you of TFSA contribution room or over-contributions. If you have made contributions during the year, it is important that you calculate your contribution room to ensure all contributions and withdrawals are taken into account.
Here are the quick steps to manually calculate your TFSA contribution room
Current contribution room = lifetime contribution room - lifetime contribution + withdrawals form prior year - withdrawals in the current year
Start with your lifetime contribution room: This is the total amount of cumulative annual contributions since you have been eligible to start earning contribution room.
Subtract your lifetime contributions: This is the total of all the contributions you have made to your TFSA over the years. Contributions reduce your total available contribution room.
Add withdrawals from the prior year: Withdrawals made in the prior year are added back to your contribution room in the current year.
TFSA contribution room calculation example
Let’s work through a scenario to help you see how TFSA contribution room is calculated for 2024 with the following facts:
- The individual was born in 1998
- They were considered a non-resident in Canada for 2020
- They have lifetime contributions of $20,000
- Withdrawals of $5,000 in 2023
- Withdrwals of $10,000 in 2024
First we can start by determining their lifetime contribution room. Since this individual was born in 1998, they turned 18 in 2016 – which means their total lifetime contribution room would be $54,000. However, since they were a non-resident in Canada in 2020 we need to subtract the 2020 contribution room of $6,000 which leaves them with lifetime room of $48,000. Next, we can subtract lifetime contributions of $20,000 which indicates their available room before taking into consideration withdrawals is $28,000. We can then add back the withdrawal in 2023 of $5,000 since this amount is eligible to be re-contributed for a total contribution room of $33,000.
What happens if you exceed your TFSA contribution limit?
If you overcontribute to your tax-free savings account you will be subject to a penalty on the excess contributions made each month of 1% until your account no longer have excess contributions. When over contributions happen by accident they are still subject to the 1% penalty – but you are able to request a review which can result in having this fee waived. In the case of making over-contributions on purpose to generate a return that outweighs the 1% penalty rule, the CRA will not only will you be subject to the normal 1% penalty each month, but the CRA can impose a penalty that is 100% of the benefit received from the over-contribution.
TFSA Over-contribution example
If your remaining TFSA contribution room is $5,000 and a contribution of $8,000 is made into your TFSA, your account will be in a over-contributed position by an excess of $3,000. This means that each month you will have to pay $30 in penalties (1% of the excess $3,000) until your account is no longer over-contributed. You can solve this over-contribution by either withdrawing the amount, or in the case that you were unaware of the over-contribution, at the end of the year when your total contribution room increases by the annual limit (for example an increate of $7,000) you account will no longer be in an over-contributed state.
What happens to TFSA contributions and withdrawals if you become a non-resident
If you become a non-resident of Canada you will no longer be able to accumulate additional contribution room for that period in time you are considered a non-resident. If you have remaining contribution room when you become a non-resident, you will not be able to make additional contributions to your TFSA during this period of time. Any contributions made during that time will be subject to a 1% tax penalty per month. Your TFSA is still able to generate tax-free returns.
FAQ's
How much TFSA room do you have if you have never contributed?
If you have never contributed to your TFSA before, you are able to contribute your total lifetime contribution room which can be found in the above table.
Are TFSA contributions tax deductible?
TFSA contributions are not tax deductible. Contributions to your TFSA are made with after-tax income. They are then able to grow tax-free and be withdrawn tax-free.
How do withdrawals impact TFSA contribution room?
Withdrawals made in the current year are not able to be added back as contributions in that year. However, that amount will be added back to your contribution room in the following year.
What is the difference between a TFSA contribution room and growth calculator?
This calculator is a TFSA contribution room calculator and helps you determine what you can contribute to your TFSA. If you want to see how these contributions will grow, you can check out this TFSA calculator to see the benefit of tax free growth.
Why should I use a TFSA?
A TFSA is a great investment account to help save for your financial goals. You are able to earn interest tax-free, which helps your money grow faster. A TFSA also allows you to withdraw this money at any time tax-free.
Do you lose contribution room when you withdrawal from a TFSA?
Withdrawals from your TFSA are able to be added back as contribution room in the following year. If you withdrawal and re-contribute that amount in the same year, you risk over-contributing to your TFSA in which you would incur a penalty
When does TFSA contribution room reset?
TFSA contribution room resets with the calendar year on January 1st. This means that withdrawals made in the previous year are able to be added back to contribution room in addition to the new annual limit.
When can I withdrawal money from my TFSA and how much?
You are able to withdrawal money from your TFSA at any time. It is important to note that certain taxes may apply if you are considered a non-resident of Canada when money is withdrawn. There is no limit on what you are able to withdrawal.
How to use the TFSA calculator
What year were you born in: This year helps calculate how long you have been 18 year of age. This is useful in determining the total years that TFSA contributions have been available to you.
How much have you contributed to your TFSA in total?:The total contributions that an individual makes reduces the amount that they are able to contribute without going over their contribution limit.
How much have you withdrawn from your TFSA before 2023?: Withdrawls are included in your contribution limit the following year of their withdrawl.
How much have you withdrawn from your TFSA in 2023?: Withdrawls made in the current year can not be added to your contribution limit for the current year. These contributions will be added to your contribution limit in the following year.
Legal Disclaimer
This calculation is for illustrative purposes only and should not be relied upon as specific financial advice. You should speak with a professional before making any final decisions to ensure that your financial needs have been properly taken into account.