TFSA Tracker: Know Your Contribution Room

Use this free calculator to determine your total TFSA contribution room based on the year you turned 18. Enter your contributions to date to see how much room you have left.

Tax-free contributions + growth
12 years
ContributionsGrowth

TFSA contribution room calculator

TFSA room accumulates from the later of 2009 or the year you turned 18 as a Canadian resident.

Sum of all TFSA contributions you have ever made (not including growth or withdrawals added back).

Lifetime room

$109,000

Contributed

$50,000

Remaining room

$59,000

Show year-by-year breakdown
YearAnnual limitCumulative
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
2025$7,000$102,000
2026$7,000$109,000

How TFSA contribution room works

The Tax-Free Savings Account (TFSA) is one of the most powerful tools available to Canadian investors. Unlike an RRSP, contributions are made with after-tax dollars, but all investment income (capital gains, dividends, and interest) grows completely tax-free, and withdrawals are tax-free at any time for any purpose.

Your TFSA contribution room is determined by three factors: the annual dollar limit set by the CRA for each year (indexed to inflation and rounded to the nearest $500), the number of years you have been eligible (18 or older and a Canadian resident), and any prior withdrawals. Room accumulates automatically every January 1, whether or not you have a TFSA account open. Unused room carries forward indefinitely.

The annual limits have grown over time: $5,000 from 2009-2012, $5,500 in 2013-2014, a one-time bump to $10,000 in 2015, $5,500 in 2016-2018, $6,000 from 2019-2022, $6,500 in 2023, and $7,000 from 2024-2026. If you were 18 or older in 2009 and have never contributed, your total lifetime room in 2026 is $102,000. That is a significant amount of tax-free investing capacity.

A critical rule that catches many people off guard: withdrawals are not added back to your room until the following January 1. If you withdraw $10,000 in June 2025 and re-contribute it in September 2025, the CRA considers that $10,000 a new contribution for 2025. You will not get the room back until January 1, 2026. Over-contributing triggers a 1% per month penalty on the excess amount. WealthWatch tracks this automatically and warns you before you exceed your room.

Common TFSA mistakes

Over-contribution. The most common and costly mistake. It usually happens when someone withdraws from their TFSA and re-contributes in the same year, not realizing the room does not reset until January. The 1% monthly penalty adds up quickly. A $10,000 over-contribution costs $100 per month, or $1,200 per year. The CRA sends a letter, but often months after the excess began accruing. Check your room before every contribution.

Day trading in a TFSA. There is no CRA rule that says you cannot trade actively in a TFSA. However, the CRA has successfully reassessed taxpayers who turned small TFSA balances into hundreds of thousands through frequent, short-term trading. The CRA's position is that if you are carrying on a business of trading securities, the profits are business income, not investment income, and are fully taxable even inside a TFSA. Factors they look at include trade frequency, holding periods, total time spent, and specialized knowledge. Occasional swing trades are fine; treating your TFSA like a proprietary trading desk is not.

US dividends in a TFSA. The Canada-US tax treaty exempts RRSPs from US withholding tax, but TFSAs are not covered. US stocks and ETFs held in a TFSA are subject to 15% withholding on dividends, and you cannot claim a foreign tax credit because the TFSA has no "taxable income" to offset. For a $100,000 US dividend portfolio yielding 3%, that is $450 per year in unrecoverable tax. If you hold significant US dividend payers, an RRSP or non-registered account is more tax-efficient. WealthWatch shows the withholding impact for each position so you can optimize placement.

Frequently asked questions

How is TFSA contribution room calculated?+
Your room is the sum of the annual CRA limits for each year you were 18+ and a Canadian resident, minus net contributions (total contributions minus withdrawals added back on January 1 of the following year). Unused room carries forward indefinitely.
What happens if I over-contribute to my TFSA?+
The CRA charges a 1% per month penalty on the excess amount. If you over-contribute by $5,000, that is $50 per month until the excess is withdrawn. The most common trigger is withdrawing and re-contributing in the same year before the room resets on January 1.
Can I day trade in my TFSA?+
Technically yes, but the CRA has audited and reassessed taxpayers who use their TFSA to carry on a business of trading securities. If the CRA deems your activity a business, profits become fully taxable. Occasional active trading is generally fine; high-frequency day trading with large balances raises red flags.
Are US dividends tax-free in a TFSA?+
No. US dividends in a TFSA are subject to 15% US withholding tax, which is not recoverable. The TFSA is not recognized under the Canada-US tax treaty. To avoid this, hold US dividend payers in an RRSP (withholding waived) or non-registered account (foreign tax credit claimable).
Does WealthWatch track TFSA contribution room?+
Yes. WealthWatch tracks contributions and withdrawals across all connected TFSA accounts, calculates remaining room in real time, and alerts you before you over-contribute. You can also manually enter historical contributions from before you connected.

Never over-contribute again

WealthWatch tracks your TFSA room in real time across all connected accounts. Get alerts before you hit your limit, see withdrawal room added back each January, and avoid the 1% monthly penalty.