TFSA Calculator
Work out your cumulative TFSA contribution room from the year you turned 18, and project tax-free growth against a taxable account.
How to use this calculator
- 1Enter your birth year — room accrues from the year you turned 18, or 2009, whichever is later.
- 2Enter everything you have ever contributed across all your TFSAs, not just the current one.
- 3Add any withdrawals from previous years, which have already restored room.
- 4Check the available figure against your CRA My Account, which is authoritative but often lags recent contributions.
How the calculation works
Room = Σ annual limits from the later of 2009 and the year you turned 18, plus prior-year withdrawals, less contributions to date- annual limit
- $7,000 for 2026; the yearly amounts have ranged from $5,000 to $10,000 since 2009
- prior-year withdrawals
- Restored to your room, but only from 1 January of the following year
Room accrues from the year you turn 18, not from when you opened an account. Someone who has never held a TFSA still has every year of room since they became eligible.
The annual amounts sum to $109,000 by 2026 for anyone eligible since 2009 — that is, born in 1991 or earlier.
Unlike an RRSP, a TFSA withdrawal does not permanently consume room. It comes back the following January, which makes a TFSA suitable for money you may actually need.
Worked example
Born in 1990, contributed $40,000
- 1.Born in 1990, you turned 18 in 2008 — before the TFSA existed — so room accrues from 2009.
- 2.The annual limits from 2009 to 2026 sum to $109,000.
- 3.Having contributed $40,000, there is $69,000 of room still available.
- 4.Everything inside grows and is withdrawn entirely free of tax.
Result: $69,000 of room remaining
Born in 2000, room starts later
- 1.You turned 18 in 2018, so room accrues from 2018 rather than 2009.
- 2.That covers 2018 through 2026, a much smaller cumulative total than the full $109,000.
- 3.This is why the widely quoted "$109,000" figure only applies to people born in 1991 or earlier.
Result: Substantially less than the headline cumulative figure
How TFSA room accumulates
A TFSA is a wrapper, not an investment. It can hold cash, funds, stocks or bonds, and everything inside is free of Canadian tax — no tax on growth, no tax on withdrawal, and nothing to report on your return.
Room accrues automatically from the year you turn 18, or from 2009 when the account was introduced, whichever is later. It does not require opening an account, filing anything, or even having income — unlike RRSP room, which depends entirely on earnings. Someone who has never held a TFSA still has every year of room waiting.
The annual amount has varied: $5,000 at launch, briefly $10,000 in 2015, and $7,000 for 2026. Summed across 2009 to 2026 that gives $109,000 of cumulative room — but only for someone who was already 18 in 2009, meaning born in 1991 or earlier. Anyone younger has proportionally less, which is why the headline figure so often misleads.
The withdrawal rule that causes accidental over-contributions
TFSA withdrawals restore contribution room — but not immediately. The amount you take out is added back on 1 January of the *following* year.
This produces the single most common TFSA error. Someone withdraws $10,000 in March for an unexpected expense, gets the money back in August, and re-contributes it — believing they are simply restoring their own funds. They are not: that $10,000 of room does not return until the next January, so the re-contribution is an over-contribution, and the penalty tax of 1% per month starts running on it.
The Canada Revenue Agency does issue assessments for this, often a year or more later once the annual reporting catches up, by which point the penalty has accumulated. If it happens, withdrawing the excess promptly stops the clock.
TFSA against RRSP, and where each belongs
The two accounts are algebraic mirrors. An RRSP deducts now and taxes the withdrawal; a TFSA uses after-tax money and the withdrawal is free. At identical tax rates at both ends they produce exactly the same result, which surprises people who assume one must be inherently better.
The rate comparison decides it. If your rate in retirement will be lower than today's, the RRSP wins. If it will be higher — early career, or a year of unusually low income — the TFSA wins.
Two practical considerations often matter more than the arithmetic. TFSA withdrawals do not count as income, so they do not claw back income-tested benefits like Old Age Security or the Guaranteed Income Supplement, whereas RRSP and RRIF withdrawals do. And TFSA room comes back after a withdrawal while RRSP room is gone forever, which makes the TFSA the right home for money you might genuinely need.
What this assumes, and where it stops
Assumptions
- You have been a Canadian resident throughout, since non-residents do not accrue room.
- Contributions are made at the start of each year and stay within the annual limit.
- A constant return applies throughout.
- The taxable comparison taxes the return each year at the single rate entered.
Limitations
- Non-resident years do not accrue room and are not modelled here.
- The taxable comparison is simplified — a real non-registered account defers capital gains until sale and only half of a capital gain is taxable in Canada, so the drag on a growth portfolio is overstated.
- Successor holder and beneficiary rules on death are excluded.
- CRA My Account is authoritative for your room, though it often lags recent contributions by months.
Common questions
How much TFSA room do I have?
Add up the annual limits from the later of 2009 and the year you turned 18, then subtract everything you have ever contributed and add back withdrawals from previous years. Someone eligible since 2009 — born 1991 or earlier — has $109,000 of cumulative room for 2026. Anyone younger has less, which is why the headline figure misleads so often.
If I withdraw from my TFSA, can I put it back?
Yes, but not until 1 January of the following year. Withdrawn amounts are added back to your room then, not immediately. Re-contributing in the same calendar year is an over-contribution and attracts a penalty tax of 1% per month on the excess. This is the most common TFSA mistake, and the CRA typically catches it a year or more later once the penalty has accumulated.
TFSA or RRSP — which should I use?
Compare your tax rate now against your expected rate in retirement. Lower in retirement favours the RRSP; higher favours the TFSA. At equal rates they are mathematically identical. Two things tip it beyond the arithmetic: TFSA withdrawals do not count as income, so they will not claw back Old Age Security or the Guaranteed Income Supplement, and TFSA room returns after a withdrawal while RRSP room is gone for good.
Do I need income to get TFSA room?
No. Unlike RRSP room, which is 18% of earned income, TFSA room accrues automatically from the year you turn 18 regardless of whether you earned anything or even opened an account. A student with no income still accumulates the full annual amount every year, and it all carries forward indefinitely until used.
Sources
- Tax-Free Savings Account (TFSA), Guide for Individuals — Canada Revenue Agency
- Contributions to a TFSA — Canada Revenue Agency
Formula and content last reviewed on .
Results are estimates for information only, not professional advice.
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