TFSA Calculator

$7,000 for 2026 (indexed to CPI, rounded to nearest $500). If you have been eligible (18+, Canadian resident) since 2009 and never contributed, your lifetime room is around $102,000. Unused room carries forward forever.

Yes — contributions are after-tax (no deduction), but ALL growth, dividends, and withdrawals are 100% tax-free, forever. The CRA receives nothing. This is the best tax shelter Canada offers, period.

No — 1% per month penalty on the excess amount until withdrawn. Check your contribution room in CRA My Account before depositing. Common mistake: withdrawing and re-contributing in the same year — the withdrawal only restores room the following January 1.

FHSA wins if you are buying a first home within 15 years — you get RRSP-style tax deduction on contribution AND TFSA-style tax-free withdrawal for home. Use FHSA first, then TFSA for anything above the $40k FHSA lifetime cap.

Highest-growth assets: Canadian and US equity ETFs (VFV, XEQT, VEQT), growth stocks. Avoid bonds and GICs inside TFSA unless short-horizon — the tax shelter is wasted on 4% interest. Caution with US dividend stocks: 15% IRS withholding tax applies inside TFSA (not recoverable, unlike in RRSP where the Canada-US treaty exempts). Day-trading inside TFSA risks CRA reclassifying as business income — fully taxable and penalties. Hold for months+, not minutes.

In all provinces except Quebec you can name a "successor holder" (spouse/common-law partner) — they inherit the TFSA intact, preserving tax-free status and not using their own contribution room. Or name any "beneficiary" (adult child, parent) — account collapses at death, value paid out, any growth after death is taxable in the estate. Quebec handles this via a Will. Always designate a successor holder if married — avoids probate and preserves room.