TFSA Contributions

If you turn 18 in November 2025, and you’re a Canadian resident with a valid SIN: 

• You don’t receive annual TFSA dollar limit amounts for any years before 2025. 
• You do receive your annual TFSA limit for 2025 on January 1, 2025, even though your 18th birthday is later in the year. 
• If you don’t use that room, it becomes carry-forward room. 
• On January 1, 2026, you will receive the annual TFSA dollar limit for 2026, assuming you remain a Canadian resident. 

Your available TFSA contribution room on January 1, 2026 = $14,000 if you haven’t contributed yet: 

• Annual TFSA dollar limit for 2025 - $7,000 
• Annual TFSA dollar limit for 2026 - $7,000

If you move to Canada and become a tax resident in July 2025, and you’re at least 18 with a valid SIN: 

• You don’t receive annual TFSA dollar limit amounts for any years before 2025.  
• You do receive the annual TFSA dollar limit for 2025. 
• If you don’t use that room, it becomes carry-forward room. 

On January 1, 2026, you will receive the annual TFSA dollar limit for 2026, assuming you remain a Canadian resident. 

Your available TFSA contribution room on January 1, 2026 = $14,000: 

• Annual TFSA dollar limit for 2025 - $7,000 
• Annual TFSA dollar limit for 2026 - $7,000

No, you only build contribution room for the years you met all eligibility requirements. You don’t receive contribution room for years before you turned 18 or before you became a Canadian resident. 

This means you won’t have carry-forward room for those years either. 

Your financial institution reports your TFSA contributions and withdrawals to the CRA annually. The CRA updates your CRA TFSA contribution room in “My Account” once it receives that information annually. It doesn’t update in real time. 

To avoid overcontributing, track your contributions and withdrawals yourself throughout the year.  

Check your CRA TFSA contribution room by logging into “My Account” on the CRA’s website

You create an overcontribution when you make contributions in excess of your available TFSA contribution room. If this happens, the CRA may charge a 1% tax per month on the excess amount until you remove it or regain enough available contribution room. 

For example, say your available TFSA contribution room was $5,000 and you contributed $6,000 to your TFSA. You will be charged $10 every month until you withdraw the excess $1,000 or until new contribution room generates the following year. 

Note: If you don’t remove the overcontribution, the extra amount reduces your available contribution room for the following year and the monthly penalty will then stop. You still owe the penalty for the months your TFSA had excess contributions. 

If you think you over-contributed: Learn how to fix a TFSA or RRSP overcontribution.

To avoid TFSA over-contributions: 

• Check your TFSA contribution limit at the start of each year. You can see your CRA TFSA contribution room through the CRA’s “My Account” on the CRA website. Any contributions or withdrawals made in the year may not appear right away. Also, at the beginning of a new year, CRA may not include all transactions from the previous year until the financial institution completes its reporting obligations.  
• Track your contributions and withdrawals yourself throughout the year. This is important if you have multiple TFSAs or make multiple contributions or withdrawals, since your available TFSA contribution room applies across all accounts. 
• Be careful when you withdraw money. It may be better to wait until January 1 of the next year to re-contribute unless you still have enough available TFSA contribution room for the current year. 

If you become a non-resident of Canada, you can continue to hold your existing TFSAs and your available TFSA contribution room carries over when you become a Canadian resident again. But while you’re a non-resident, you can’t contribute or earn contribution room.  

Taxes and/or penalties may apply in the country where you reside. Speak with a tax professional about your specific situation.