What is a TFSA?
A Tax-Free Savings Account (TFSA) is a registered savings and investment account available to Canadian residents aged 18 and older with a valid SIN. All income earned inside the accountβsuch as interest, dividends, or capital gainsβis completely tax-free, even when you withdraw it.
Unlike RRSPs, TFSA withdrawals are not taxed and can be made at any time, making it one of the most flexible financial tools for Canadians.
Why Use a TFSA Calculator?
The TFSA comes with annual contribution limits and special rules about withdrawals. Keeping track of your available room can be confusing. A TFSA Calculator helps you:
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Estimate your total contribution room.
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Plan contributions without over-contributing.
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Project future tax-free growth of your investments.
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Understand how withdrawals affect future contribution limits.
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Compare different savings strategies.
How TFSA Contribution Room is Calculated
Your TFSA contribution room is the total amount you can deposit into your TFSA without penalty. It is calculated using three main factors:
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Annual TFSA Limit β Set by the Canadian government each year.
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Example: $6,500 in 2023, $7,000 in 2024.
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Lifetime total (2009β2024): $95,000 if you were eligible since 2009.
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Unused Room Carried Forward β Any unused limit from previous years is added to your future room.
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Example: If you only contributed $2,000 in 2022 (limit was $6,000), the remaining $4,000 carries forward.
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Withdrawals from Previous Year β Any amount you withdraw is added back to your contribution room, but only starting the next calendar year.
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Example: If you withdrew $5,000 in 2023, you can re-contribute that $5,000 in 2024 in addition to your new limit.
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Formula:
β οΈ Over-contributions are penalized by the CRA at 1% per month on the excess amount, so keeping track is essential.
TFSA Contribution Limits by Year (2009β2024)
| Year | Annual Limit | Cumulative Total* |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
| 2019 | $6,000 | $63,500 |
| 2020 | $6,000 | $69,500 |
| 2021 | $6,000 | $75,500 |
| 2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
* For individuals eligible since 2009.
How the TFSA Calculator Works
Our TFSA Calculator allows you to:
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Enter your current age and year of eligibility.
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Input past contributions and withdrawals.
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See your available contribution room today.
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Project future growth using an estimated rate of return.
This makes it easier to plan your deposits, avoid penalties, and maximize your tax-free growth.
Benefits of Maximizing TFSA Contributions
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Tax-Free Growth β Interest, dividends, and capital gains are never taxed.
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Flexible Withdrawals β Take money out anytime without tax penalties.
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Room Restored Next Year β Withdrawals are added back to your limit the following year.
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Great for Any Goal β Retirement, home down payment, emergency fund, or long-term investing.
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No Age Limit for Contributions β Unlike RRSPs, TFSA has no requirement to close at age 71.
Example: Calculating Contribution Room
Letβs say Emma turned 18 in 2018 and never contributed until 2023:
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2018β2022 total limit = $29,500
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2023 limit = $6,500
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Total available in 2023 = $36,000
If she contributes $10,000 in 2023 and withdraws $2,000:
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End of 2023: Remaining room = $26,000
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In 2024: New limit $7,000 + $2,000 withdrawal + $26,000 = $35,000
This is exactly the type of calculation a TFSA Calculator makes simple.
A TFSA is one of the most powerful tools for Canadians to save and invest tax-free. By understanding how contribution room works and using a TFSA Calculator, you can avoid penalties, make smarter contributions, and grow your wealth efficiently.