Calculate your Tax-Free Savings Account contribution room, growth projections, and tax-free savings potential.
Enter your current situation and goals
The Tax-Free Savings Account (TFSA) is a registered account that allows Canadians to earn investment income tax-free. Unlike RRSPs, TFSA contributions are not tax-deductible, but all growth and withdrawals are completely tax-free.
$7,000
Increased from $6,500 in 2023
$95,000
Since 2009 for eligible Canadians
| Feature | TFSA | RRSP |
|---|---|---|
| 2025 Limit | $7,000 | 18% of income up to $31,156 |
| Tax Deduction | No | Yes |
| Withdrawals | Tax-free | Taxed as income |
| Age Limit | 18+ | 18+ to 71 |
| Best For | Emergency fund, short-term goals | Retirement planning |
Invest in growth stocks and ETFs for maximum long-term returns. Since all gains are tax-free, this strategy maximizes the TFSA's benefits.
Focus on Canadian dividend stocks for tax-free income. Perfect for building passive income streams.
Mix of growth and income investments for steady returns with moderate risk.
The TFSA contribution limit for 2025 is $7,000. This is an increase from $6,500 in 2023. Since the TFSA was introduced in 2009, the total lifetime contribution room is now $95,000 for eligible Canadians. The limit is indexed to inflation and announced annually by the CRA.
Your TFSA contribution room = Previous year's unused room + Current year's limit + Previous year's withdrawals. Our TFSA calculator automatically calculates this based on your current balance and the year you became eligible. The CRA tracks your contribution room in your My Account.
CRA charges a penalty of 1% per month on excess contributions. This penalty continues until you withdraw the excess amount or until you have sufficient contribution room in future years. It's crucial to track your contributions carefully.
Yes, you can withdraw from your TFSA at any time without penalty. Withdrawals are added back to your contribution room on January 1st of the following year, allowing you to re-contribute that amount. This flexibility makes TFSAs ideal for emergency funds.
You can hold stocks, bonds, ETFs, mutual funds, GICs, and other qualified investments. The growth on all investments is tax-free, making it ideal for dividend stocks and growth investments. You cannot hold certain investments like precious metals or real estate directly.
Generally, if you're in a lower tax bracket now than you expect in retirement, prioritize TFSA. If you're in a higher tax bracket now, prioritize RRSP. Many Canadians benefit from contributing to both accounts strategically.
Yes, you can have multiple TFSA accounts with different institutions, but your total contributions across all accounts cannot exceed your contribution room. This allows you to shop around for the best rates and investment options.
Your TFSA can be transferred to your spouse or common-law partner tax-free. If transferred to a non-spouse, the fair market value becomes taxable income to the beneficiary. Consider naming a beneficiary to avoid probate.
Maximize tax-free growth by investing in high-growth stocks and ETFs. Perfect for young investors with long time horizons.
💡 Pro Tip: Since all gains are tax-free, this strategy maximizes the TFSA's benefits over decades.
Build tax-free passive income with Canadian dividend stocks. Ideal for income-focused investors.
💡 Pro Tip: Canadian dividends are already tax-advantaged, making TFSAs perfect for dividend income.
Combine growth and income investments for steady returns with moderate risk.
💡 Pro Tip: Perfect for investors who want growth potential with some income stability.
| Feature | TFSA | RRSP |
|---|---|---|
| 2025 Contribution Limit | $7,000 (fixed) | 18% of income up to $31,156 |
| Tax Treatment | No tax deduction, tax-free growth | Tax deduction now, taxed on withdrawal |
| Withdrawal Age | Any age, no restrictions | Any age (withholding tax) |
| Withdrawal Rules | Completely tax-free | Taxed as income |
| Best For | Emergency funds, short-term goals | High-income earners, retirement |
| Contribution Deadline | December 31st | March 1st (60 days after year-end) |
| Age Restrictions | 18+ (no upper limit) | 18+ to 71 |
Annual Limit: $7,000
Total Room: $95,000
Annual Limit: $6,500
Total Room: $88,000
Annual Limit: $6,000
Total Room: $81,500
Annual Limit: $6,000
Total Room: $75,500
Annual Limit: $6,000
Total Room: $69,500
Annual Limit: $6,000
Total Room: $63,500
Annual Limit: $5,500
Total Room: $57,500
Annual Limit: $5,500
Total Room: $52,000
Annual Limit: $5,500
Total Room: $46,500
Annual Limit: $10,000
Total Room: $41,000
Annual Limit: $5,500
Total Room: $31,000
Annual Limit: $5,500
Total Room: $25,500
Annual Limit: $5,000
Total Room: $20,000
Annual Limit: $5,000
Total Room: $15,000
Annual Limit: $5,000
Total Room: $10,000
Annual Limit: $5,000
Total Room: $5,000
Invest in growth stocks and ETFs for maximum long-term returns. Since all gains are tax-free, this strategy maximizes the TFSA's benefits.
Invest in dividend-paying stocks for tax-free income. Perfect for Canadian dividend stocks with the dividend tax credit.
Use TFSA for emergency fund or short-term goals with GICs and high-interest savings accounts.
Combine growth and income investments for a balanced approach that provides both growth and income.
Historical average: 7-10% annually. Perfect for long-term growth with tax-free compounding.
Dividend yield: 4-6% + growth. Tax-free dividend income perfect for TFSA.
Contributing more than your available room results in a 1% monthly penalty. Always check your contribution room before contributing.
While TFSAs are flexible, using them for frequent transactions wastes the tax-free growth potential. Consider a separate emergency fund.
Unused contribution room is lost forever. Even small regular contributions can grow significantly over time.
Choosing low-return investments like GICs defeats the purpose of tax-free growth. Consider growth-oriented investments.
The CRA doesn't track your contributions in real-time. Keep detailed records to avoid over-contributing.
Regular rebalancing ensures your portfolio stays aligned with your risk tolerance and investment goals.
Compare TFSA vs RRSP and calculate your RRSP contribution limits with tax savings analysis.
Calculate RRSP →Calculate tax on Canadian dividends including eligible and non-eligible with provincial breakdowns.
Calculate Dividend Tax →Comprehensive retirement planning with TFSA, RRSP, CPP, and OAS projections.
Plan Retirement →Calculate mortgage payments, amortization schedules, and compare different scenarios.
Calculate Mortgage →Compare renting vs buying a home with detailed cost analysis and opportunity costs.
Compare Rent vs Buy →Calculate rental property yields, cash flow, and ROI for real estate investments.
Calculate Rental Yield →