TFSA Calculator

Almost any qualifying investment: Canadian and US stocks, ETFs, mutual funds, GICs, bonds, options, REITs. Note: US dividends inside a TFSA are subject to 15% withholding tax (not so in an RRSP due to the Canada-US tax treaty). Hold US dividend stocks in your RRSP and Canadian ETFs in your TFSA for maximum efficiency.

The CRA charges 1% per month on the excess amount until withdrawn — no grace buffer like RRSP. Withdrawals add back to room on January 1 of the following year (not immediately). Check your available room at CRA My Account.

Use RRSP when your current marginal rate is higher than your expected retirement rate. Use TFSA when your rate is lower, you need flexibility, or RRSP is already maxed. Most Canadians benefit from using both. Strategy: contribute to RRSP at peak income, use the refund to fund your TFSA.