TFSA contribution room calculator

Presented By
Scotiabank
Presented By
Scotiabank
Find out your current tax-free savings account (TFSA) contribution limit by using this calculator.
Tax-free savings account is a bit of a misnomer. While you can use it for straightforward savings, think of it more accurately as an investment holding account to store things like exchange-traded funds (ETFs), guaranteed investment certificates (GICs), bonds, stocks and, yes, plain old cash. While you do have to abide by the set amount of contribution room each year, any growth you earn on those investments will not affect your contribution room for the current year or years to come. Plus, the income earned is tax-free (more on that below). Any resident of Canada who is 18 or older and has a valid social insurance number can open a TFSA.
TFSA contributions won’t reduce your taxable income and generate a tax refund, unlike registered retirement savings plan (RRSP) contributions. (If you haven’t maxed out your RRSP, get on that before the deadline). However, where you do save on taxes with a TFSA is that the return you earn inside your TFSA is not taxable. That means income from things like interest, dividends or capital gains aren’t subject to income tax. Any income earned in the account—even when it is withdrawn—is generally tax-free. We say “generally” because foreign dividends, for example, may be subject to withholding tax, but the dividends don’t go on your tax return. (Not sure where to invest? Read TFSA vs RRSP: How to decide between the two.)
Your TFSA contribution room is the maximum amount you can contribute to your TFSA for any given year. Your contribution room and your age affect the amount of contribution room you have. You begin accumulating contribution room from the year you turn 18 (as long as you are a resident of Canada), even if you didn’t file an income tax return that year or have a TFSA yet.
Your contribution room is the total amount of the following:
The TFSA contribution limit for 2023 is $6,500. If you turned 18 before the year 2009 and have never contributed, your maximum lifetime TFSA contribution limit is $88,000. If you take money out of your TFSA, you get that room back on January 1 the following year. Just don’t go over your limit or make the mistake of thinking you get your TFSA room back for withdrawals right away.
If you exceed your contribution limit, you’ll be subject to a 1% penalty tax per month. Luckily, this 1% tax only applies to the amount that’s been overcontributed, not the whole account value.
Qualified investments for TFSAs include:
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At age 77 can i still deposit money into TFSA account?
Yes, anyone over the age of 18 is eligible to contribute to a TFSA and there is no age limit.
Can a BC resident of 18 years old in 2023 open a TFSA or do they have to wait until they are 19? Age of majority in BC is 19.
Thank you for your question. Any resident of Canada who has a valid social insurance number and who is 18 years of age or older can open a TFSA.
Scenario: you have never contributed and deposit your full amount one year at beginning of the year ($88,000). Say, It makes say $10,000 in investment income. If you withdraw $20,000 the following year, how much contribution room does that open up?
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