You do not need to have earned income to contribute to a TFSA. The maximum amount that you can contribute to your TFSA is limited by your TFSA contribution room.
All TFSA contributions made during the year, including the replacement or re-contribution of withdrawals made from a TFSA, will count against your contribution room.
At any time in the year, if you contribute more than your available TFSA contribution room, you will have to pay atax equal to 1% of the highest excess TFSA amount in the month, for each month that theexcess amount remains inyour account. For more information, see TFSA excess amount correspondence explained.
As the account holder, you are the only person who can do the following withyour TFSA:
- make contributions
- make withdrawals
- determine how funds are invested
You can give your spouse or common-law partner money so that they can contribute to their own TFSA, and this amount or any earned income from that amount will not be allocated back to you. The total contributions you each make to your own TFSAs cannot be more than your TFSA contribution room. For more information, see TFSA contribution room below.
Management fees related to a TFSA trust and paid by the holder are not considered to be contributions to the TFSA. The payment of investment counsel, transfer, or other fees by a TFSA trust will not result in a distribution (withdrawal) from the TFSA trust.
Your TFSA contribution room is the maximum amount that you can contribute to your TFSA.
Only contributions made under a valid SIN are accepted as TFSA contributions.
If you were 18 or older in 2009, your TFSA contribution room grows each year even if you do not file an income tax and benefit return or open a TFSA.
If you turned 18 after 2009, your TFSA contribution room starts in the year you turned 18 and your TFSA contribution room accumulates every year after that year.
Investment income earned by, and changes in the value of your TFSA investments will not affect your TFSA contribution room for current or future years.
The annual TFSA dollar limit forthe year2023is $6,500.
The annual TFSA dollar limit for the years2019to2022was $6,000.
The annual TFSA dollar limit for the years2016 to 2018was$5,500.
The annual TFSA dollar limit forthe year2015was$10,000.
The annual TFSA dollar limit for the years2013and2014was$5,500.
The annual TFSA dollar limit for the years2009 to2012was$5,000.
The TFSA annual room limit will be indexed to inflation and rounded to the nearest $500.
You will accumulate TFSA contribution room for each year even if you do not file an income tax and benefit return or open a TFSA.
Example 1
Brayden was eager to open his TFSA, but he didn’t turn 18 until December 21, 2021. On January 4, 2022, he opened a TFSA and contributed $12,000 ($6,000 for 2021 plus $6,000 for 2022 – the maximum TFSA dollar limits for those years). On the advice of his broker, he had opened a self-directed TFSA and invested in stocks that increased in value. By the end of 2022, the value in Brayden’s TFSA had increased to $12,800. Brayden was worried that for 2023, he would only be able to contribute $5,700 (the TFSA dollar limit of $6,500 for 2023 less the $800 increase in value in his TFSA through 2022). Neither the earnings produced in the account nor the increase in its value will reduce the TFSA contribution room in the following years, so Brayden can contribute up to $6,500 in 2023 to his TFSA.
How to know your TFSA contribution room
The TFSA contribution room is the total of all of the following:
- the TFSA dollar limit of the current year
- any unused TFSA contribution room from previous years
- any withdrawals made from the TFSA in the previous year
Note
Qualifying transfers, exempt contributions and specified distributions are not considered in the calculation of contribution room.
Example 2
From 2014 until the end of 2021, Josh contributed the maximum TFSA dollar limit each year. As a result of his $6,000 contribution in 2021, his unused TFSA contribution room at the end of 2021 was zero.
His TFSA contribution room at the beginning of 2022 was $6,000 (the 2022 TFSA dollar limit).
On June 15, 2022, Josh made a contribution of $500. On October 26, 2022, he withdrew $4,000.
His unused TFSA contribution room at the end of 2022 was $5,500 ($6,000 – $500).
Josh calculated his TFSA contribution room for the beginning of 2023 as follows:
Step 1: Calculate UnusedTFSA contribution room at the end of 2022
TFSA contribution room at the beginning of 2022 ($6,000)minuscontributions made in 2022 ($500)=Unused TFSA contribution room at the end of 2022 ($5,500)
Step 2: Calculate TFSA contribution room at the beginning of 2023
Unused TFSA contribution room at theend of 2022 ($5,500)+total withdrawal made in 2022 ($4,000)+ 2023 TFSA dollar limit ($6,500)=TFSA contribution room at the beginning of 2023 ($16,000).
The TFSA contribution room will not accumulate for any year during which the individual is a non-resident of Canada throughout the entire year.
The TFSA dollar limit is not prorated in the year when an individual meets any of one of the following conditions:
- turns 18 years of age
- dies
- becomes a resident or a non-resident of Canada
Where to find your TFSA contribution room information
Your TFSA contribution room information can be found by using one of the following services:
- My Account
- MyCRA
- Represent a Clientif you have an authorized representative
- Tax Information Phone Service (TIPS)at 1-800-267-6999
Note
Any contributions that are made or withdrawn from a TFSA in the prior year may not be reflected in your available current year contribution room until after the end of February. All issuers have until the last day of February to electronically submit a TFSA record to the CRA for each individual who has a TFSA. Any transactions made in the current year will not be included.
In addition, if you want to receive a TFSARoom Statement, contact us. You can also ask for a TFSA Transaction Summary that shows the information that we received from your TFSA issuer(s) about your contributions and withdrawals.
If the information that we have about your TFSA transactions is not complete or if you have made contributions to your TFSA this year, use Form RC343, Worksheet – TFSA contribution room to calculate your TFSA contribution room for the current year. If we have deemed your unused TFSA contribution room to be a specific amount, do not use this form; contact us for more information.
Youmust keep records about your TFSA transactions to ensure that you do not exceed your TFSA contribution room. Wewill also keep track of an individual's contribution room for each eligible individual based on information provided annuallyby the TFSA issuers.
How to authorize a representative
You can authorize a representative (such as your spouse or common-law partner, tax preparer, or accountant) to get information about your tax matters and give us information on your behalf. We will accept information from and/or provide information to your representative only after we are satisfied that you have authorized us to do so through My Account for Individuals, or go to Authorizing a representative – Overview.
Your authorization will stay in effect until any one of the following situations applies:
- it is cancelled by you or your representative
- it reaches the expiry date you choose
- we receive notification of your death
You or your representative can cancel the consent you gave by telephone or in writing.
If you were the legal representative of a deceased person, see Guide T4011, Preparing Returns for Deceased Persons, to know what documents are required.
Learn more about representatives by going to Authorizing a representative – Overview.
How to find your online mail
Some Tax-Free Savings Account letters are available for online mail. Once you are registered for online mail, the CRA will send you an email notification when you have new mail to view in your secure online account. Correspondence available through online mail will no longer be printed and mailed through Canada Post. To learn more, go to Email notifications from the CRA – Individuals.
How do we receive your TFSA information
By the last day of February of the following year, all issuers are required to electronically submit a TFSA record tous for each individual who has a TFSA.
If you disagree with any of the information on yourTFSA Room Statement, orTFSA Transaction Summary, including dates or amounts of contributions or withdrawals which your TFSA issuer has provided to us,contact your TFSA issuer. If any information initially provided by the issuer regarding your account is incorrect, the issuer must send us an amended record so that we can update our records.
You can view your TFSA Transaction Summary online. Go to My Account for Individuals to see all the contributions and withdrawals made to your TFSA.
Forms and publications
- Form RC343, Worksheet– TFSA contribution room
Related links
- Transfers
- Making or replacing withdrawals from a TFSA
- Tax payable on TFSA
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