How to determine your TFSA contribution limit

Jun 2, 2021

Knowing how much tax-free savings account (TFSA) contribution room you have available will help you take maximum advantage of tax-sheltered growth potential, and also help you avoid over-contribution penalties.

How much contribution room do you have? For a given year, your TFSA contribution room is the total of:

  • your annual TFSA contribution limit
  • any unused contribution room from the previous year
  • any withdrawals made from your TFSA in the previous year

If you have multiple TFSAs, your combined contributions to all of them cannot exceed your available contribution room for the current year.

2021 $6,000
2020 $6,000
2019 $6,000
2018 $5,500
2017 $5,500
2016 $5,500
2015 $10,000
2014 $5,500
2013 $5,500
2012 $5,000
2011 $5,000
2010 $5,000
2009 $5,000
Total $75,000

 

How to check your TFSA contribution room

The Canada Revenue Agency (CRA) tracks your contribution room. You can see your TFSA balance as of January 1 of the current year by logging in to your online “My Account” on the CRA website. Or you can get your balance by phoning CRA’s Tax Information Phone Service: 1-800-267-6999. Check after mid-February, to allow time for your financial institution to report all your TFSA transactions from the previous year. Ideally, keep track of those transactions yourself to ensure you don’t over-contribute.

Contribution room carry-forward

If you can’t contribute the maximum allowable in a given year, you can catch up in the future. Unused contribution amounts can be carried forward indefinitely and used in subsequent years.

Withdrawals can be re-contributed

TFSAs are flexible. You can withdraw funds any time and the amounts withdrawn in a given year are added back to your contribution room for the next year. For example, you can withdraw an amount in December, then re-contribute that amount in January.

Over-contribution penalty

There is a penalty if you accidentally contribute more than your allowable limit. In that case, a tax equal to 1% of the highest excess TFSA amount in the month will be applied for each month that you are in an excess contribution position.

For more information about contribution limits, visit the TFSA section of the Canada Revenue Agency website.

Learn more about Qtrade Direct Investing™. 

Online brokerage services are offered through Qtrade Direct Investing, a division of Credential Qtrade Securities Inc. Qtrade, Qtrade Direct Investing and Write your own future are trade names and/or trademarks of Aviso Wealth.

Recent Posts

Aviso Weekly Market Pulse: April 1st – April 5th

Market developments Equities: U.S. stocks climbed on Friday after a stronger-than-expected March jobs report, but the S&P 500 is still headed for its biggest weekly decline since the first week of the year amid rising geopolitical concerns and hawkish signals from...

Aviso Weekly Market Pulse: March 25th – March 28th

Market developments Equities: The S&P 500 Index saw modest weekly gains, propelling equities to their most impressive first-quarter performance since 2019, bolstered by the latest U.S. GDP figures. These numbers fueled speculation that the Federal Reserve might...

Why, when and how to rebalance your portfolio

Your investment portfolio needs a plan to help you reach your financial goals. Asset allocation is a relatively straightforward investment strategy that can help you to balance investing risks and rewards. An asset allocation strategy establishes the relative...

NEI Monthly Market Insights: February 2024

Markets leap forward in February The market rally continued into February in equities, with resilient economic data and relatively strong earnings reports fueling the S&P 500 Index to new record highs in February, gaining 6.9% for the month. Both the Nasdaq and...

Aviso Weekly Market Pulse: March 18th – March 22nd

Market developments Equities: Stocks experienced a slight decline on Friday, halting the week's rally triggered by the Federal Reserve's commitment to potential interest rate cuts this year. Despite the day's decline, the S&P 500 is poised for its most significant...

Aviso Weekly Market Pulse: March 11th – March 15th

Market developments Equities: The S&P 500 ended the week slightly down, as tech stocks sold off, coinciding with a significant Friday options expiration with approximately $5.3 trillion in options set to expire, adding to the market's volatility. With earnings...