New to Canada?
If you are a new immigrant or permanent resident to Canada, you are allowed (and encouraged) to open a TFSA as soon as you arrive, so long as you have a valid social insurance number and are at least 18. This is actually an advantage over having an RRSP, as in order to contribute to one you need Canadian income from the previous year (that’s how your RRSP’s annual limit is calculated), and if you are new to the country you won’t have any for at least the first year!
The year when you arrive in Canada determines when your TFSA contribution limits begin.
For example, if you arrived in Canada in 2015 but only opened your TFSA in 2016, your current contribution limit is based on 2015 ($10,000 in 2015 + $5,500 in 2016 + $5,500 in 2017 + $5,500 in 2018 + $6,000 in 2019 + $6,000 in 2020 + $6,000 in 2021 + $6,000 in 2022 = $50,500).
The time of year when you arrive is irrelevant…whether you arrived in March or November of 2015, you are allowed to contribute the full 2015 amount of $10,000 (in addition to the full 2016-2021 amounts).
Resident vs. non-resident
If you switch back and forth between being a resident and a non-resident of Canada, then the rules will switch too. While you are a Canadian resident, follow the resident rules. While you are a non-resident, follow the non-resident rules. This can get quite complicated and messy if you are switching back and forth a lot, so it’s a good idea to have a professional tax specialist look at your situation and advise you on how to handle your TFSA.
Temporary foreign workers
If you have a SIN starting with a ‘9’, you are most likely a temporary foreign worker or refugee claimant, and have a temporary SIN which will expire at some point. You are still allowed to open, contribute, and withdraw from a TFSA just like any other Canadian resident, but keep an eye on the expiry date. And if you transition from a temporary SIN to a permanent SIN you will have to notify the institution or brokerage firm holding your TFSA so they can transition your new SIN over.
While the CRA explicitly allows those with a temporary SIN to have a TFSA, there seems to be some confusion with some banks refusing to issue TFSA’s to those in this situation. If you fall into this category it’s best to check with the CRA to discuss the bank’s concerns.
Sources:
https://www.moneysense.ca/invest/ask-moneysense
http://financialcrooks.com/how-much-can-contribute-tfsa-just-18-immigrant-canada-after-2009/
59 Comments. Leave new
Hi,
I just opened my TFSA account with Scotiabank, and I noticed that there are three dependent accounts under: Cash, GIC, and Mutual Funds.
Should the sum of the money that I put respectively into these three sub-accounts be lower than my yearly limit?
And if I hope to buy some Canadian stocks, the sub-account I should use is the Cash one, right?
Is there any interest that would come with the money in the Cash account?
Thank you for answering my questions!
Hi Nick,
If you just opened a TFSA account, you can contribute your personal maximum contribution limit into your separate accounts as you see fit, but the maximum of all your accounts must not exceed your personal limit. If your personal limit is $81,500 for instance, you cannot contribute $81,500 in each of your three dependent accounts (cash, GIC, mutual funds). Instead, a grand total of $81,500 can be spread across your accounts. Remember, that your personal limit depends on your age and how much you’ve already contributed to your TFSA across institutions, as well as any withdrawals.
Correct, if you are looking to purchase Canadian stocks, you would use your Cash account.
Unfortunately, self-directed brokerage accounts do not typically pay interest on cash balances, though this depends on the institution. Check with Scotiabank to see if they’re currently offering any interest on cash balances.
Hello,
I’m a foreign worker with an open work permit, I arrived here in Canada last August 2020. Am I allowed to open a TFSA account? If yes, how much is my contribution limit for 2020? Thanks!
Hi Manuel,
If you have a valid Social Insurance Number (SIN) and are 18 or over, you can open a TFSA account. Your contribution room for 2020 would be the full the amount for the year ($6000). Starting January 1, 2022, your full contribution room would be $6000 (2020) + $6000 (2021) + $6000 (2022) = $18,000 (assuming no withdrawals).
Do note however, that if you are a non-resident of Canada and you have a valid SIN, any contributions you make while a non-resident will be subject to a 1% tax for each month the contribution stays in the account.
I arrived in Canada in Nov 2020 as an international student and obtained SIN in Feb 2021. I will initially file my tax returns next year. Please advise whether I can contribute $6,000 (for 2021) to TFSA?
Hello Enoch,
Hope you’ve had a great first year in Canada!
If you received a SIN in February of 2021, you are are indeed eligible to contribute this year’s full contribution limit to your TFSA ($6,000). You can open a TFSA at any time and contribute that amount. On January 1, 2022, you will have another $6,000 in room to contribute (for a total of $12,000).
Hi, thanks for the useful post.
If I am about to immigrate and become a resident for the first time, and I have investments already in another broker account, will my contribution limit be $6000 for 2021? And investments not transferred will attract capital gains/dividend tax?
From 2013 to 2017 I was a student at a university in Canada. Would this have any impact on what my contribution limit would be once I immigrate and I am considered as a resident?
Thanks for the help.
Hi Baseer,
Your current investments are independent of a TFSA account. When you fully immigrate and become a resident, you can then open a TFSA account with a bank, a brokerage service, etc. and decide how you will fund it. If you immigrate in 2021, your contribution limit will be $6,000.
Unless you were working during your studies and had a SIN number when attending university in Canada back in ’13-’17, unfortunately those years wouldn’t be eligible towards accumulating additional TFSA contribution room.
Hi,
I came to Canada in 2015 as a permanent residency, but now I became a Canadian citizenship in 2021. What should be my contribution room?
Hi Carolina,
Your contribution room would start accumulating the year you became a permanent resident. Your change to becoming a full-fledged Canadian citizen doesn’t impact your contribution room limit.
As of 2021, your contribution room would be: $10,000 in 2015 + $5,500 in 2016 + $5,500 in 2017 + $5,500 in 2018 + $6,000 in 2019 + $6,000 in 2020 + $6,000 in 2021 = a total of $44,500.
Hi,
I arrived in Canada in 2016. But my accounting manager says my total contribution room on CRA is $63.000. This must be wrong right?
Hi Everton,
Your accounting manager does indeed appear to be incorrect. As per CRA’s website (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/who-open-a-tfsa.html#nn_rsdnts_Cnd):
“No TFSA contribution room will accrue for any year throughout which you are a non-resident of Canada”.
If you arrived in 2016, your contribution room would be: $5,500 in 2016 + $5,500 in 2017 + $5,500 in 2018 + $6,000 in 2019 + $6,000 in 2020 + $6,000 in 2021 = $34,500
I think it’s worth mentioning what you mean by a `non-resident`. Since it’s not exactly clear whether it’s the immigration status – ‘non-resident’, a person who doesn’t have a PR card (permanent residency), vs a `non-resident` for tax purposes when you don’t have significant ties to Canada. A `non-resident` without PR can still be considered a `resident` for tax purposes by having a valid SIN. As far as I understand, the moment you are a resident for tax purposes you start accumulating TFSA contribution limits, while still not having a `resident` immigration status
Hello. I became a pr resident in 2017 but I only opened my tfsa account recently, let’s say 2/3 months ago, so beginning of 2021 for some investments. If guys can help me out about how much I can deposit by the end of the year it will be awesome. I read about 6000$ for 2021 but what about my cumulative money that I can deposit ? And once I max out my tfsa with 6000$ I can’t deposit any other money?
Thank you for the answer
Hi Edgardo,
The date you opened your TFSA account doesn’t impact your contribution room. What matters is when you received a social insurance number (SIN). If you weren’t a foreign worker or international student living in Canada before becoming a permanent resident, your contribution room would have started accumulating in 2017. In that case, you would have a total of: $5,500 in 2017 + $5,500 in 2018 + $6,000 in 2019 + $6,000 in 2020 + $6,000 in 2021 = $29,000 in total room available – an amount you can deposit at any time.
If at any time you plan on withdrawing money from your TFSA, ensure you understanding how the withdrawal rules work.
Hi. Thank you for this article.
I arrived in Canada as a PR in mid 2020. I contributed some amount to TFSA in 2021. However, a new CRA account was opened for me recently (today) and in it, the Contribution room for me on 1/1/21 is shown as $0.00. Will this be an issue? Will I have to pay a penalty? Shouldn’t my contribution limit be at least $5,500?
Thank You,
Best Regards,
Dhanuka.
Hi Dhanuka,
Your contribution room should be $12,000 ($6000 for 2020 + $6000 for 2021). What you currently see in your online CRA account might not be a current or accurate total. Best to call CRA directly if you are unsure: 1-800-959-8281.
Hi there!
My husband and I arrived in Canada in 2017 and since then he’s been contributing to his TFSA. This year I decided to open mine and it says I have a contribution room of $70,000, which is considering the date I turned 18, not the date I arrived in Canada. It seems to be wrong, I guess?
Hi Bruna,
Presumably you’re referring to when you log in to your online CRA account? If so, yes, it’s likely that the contribution amount you see there is not fully accurate. If you have questions, it’s better to call CRA directly to inquire about your contribution room balance versus acting on the total you see online; unfortunately the contribution balance displayed can be misleading, as it’s not always current.
Enjoyed your website and the articles, thank you very much. Please can you correct the mistake in this paragraph.
“our current contribution limit is based on 2015 ($10,000 in 2015 + $5500 in 2016 + $5,500 in 2017 + $5,500 in 2018 + $6,000 in 2019 + $6,000 in 2020 + $6,000 in 2020 = $44,500)”
The latest year should be 2021, you have repeated 2020 twice!!.
Thanks for catching that, David! We’ve made that correction.
Hi.
I came in Canada on Jun 2014, and I opened TFSA account 2019.
I deposit $ 58000 in my account on Apr.2019.
Please let me know how much I allowed to pay? and what should I do if I paid more?
Tank you
Mahdi
Hi Mahdi,
It appears you over-contributed by $20,000 in 2019. If you arrived in 2014, your contribution limit in 2019 would have been $38,000.
CRA should have sent you a notice of over-contribution, or an ‘excess amount letter’. Expect to pay a penalty of 1% per month on the over-contributed amount (in your case, 1% per month on $20k).
If you haven’t heard anything from CRA to date, you may wish to contact them directly to get this resolved asap. Resolution may involve paying the penalty and withdrawing the excess amount from your account.
Sorry this happened to you, but it’s extremely important to pay close attention to your contribution limits before making deposits into your TFSA.
I made entry as a PR in 2019.
I paid $6,000 into a TFSA in 2019.
I paid $6,000 into a TFSA in 2020.
I withdrew $12,000 into a TFSA in 2020.
Firstly, am I able to contribute $18,000 to a TFSA in 2021 ($6,000 for 2021 and $12,000 to replace the withdrawal in 2020)?
Secondly, am I able to take advantage of the contribution room I haven’t used from before I was in Canada (i.e. back to 2009?) or am I only able to contribute for the years I’ve been a PR in Canada (i.e. 2019-21?)
Hi James,
Correct – based on the numbers you supplied, you should be able to contribute $18,000 to your TFSA in 2021. If you’re still unsure, it’s always good to double-check with CRA by giving them a call.
Your TFSA builds contribution room the year you arrived. If you weren’t living in Canada and didn’t have a SIN before 2019, unfortunately you won’t be eligible for contribution room for the years preceding 2019.
Hello , I arrived in Canada on March 2020. I just opened a TFSA account in 2021 for $6000. Am I allowed to open another one for $6000 for the year 2020. This way I have two TFSA accounts for 6k each. Please if someone can clarify that. Thank you.
Hi Ob,
You do not need to open 2 TFSA accounts that contain $6k each. You can simply add $6k to your existing account, unless you want 2 separate accounts for a specific reason. See: https://tfsahelper.ca/general-tfsa-information/multiple-tfsas/
Having said that, if you arrived in Canada in March, 2020, yes, your total contribution room would be $12,000.
Hello
I moved to Quebec in February 2020, and I intend to do my first tax declaration in the beginning of 2021. Can I deposit 6000 $ into a TFSA account for the year 2020 (without any penalty), even though I have not filed my tax returns yet with the CRA? Thanks in advance!
Hi Nicola,
As far as we know, if you have a valid social insurance number and are over 18, you should be eligible to contribute for both 2020 and 2021 (which equals $12,000).
Please call CRA directly or consult a tax professional just to be sure.
I came to Canada on Nov 2018 and I am working since then (and paying my taxes). My wife came to Canada on Dec 2019 but is not working (on an Open work permit). Are we allowed to open a TSFA account and make contributions as below:
Self:
2018 – $5500
2019 – $6000
2020 – $6000
Wife:
2019 – $6000
2020 – $6000
Also, can we make this contribution together with a single TFSA account or have to open two separate a/c? Is my wife’s contribution towards TFSA going to help towards tax saving?
TIA!
Regards
Hi Josh,
The figures you list appear to be correct, though it’s always a good idea to call CRA directly to confirm: 1-800-959-8281.
You cannot open a joint account with your spouse, as only the person whose name the TFSA account is in can make contributions to it.
Your wife’s contribution towards her TFSA will help with her tax savings in that if she would be investing that money in a non-registered account, she would need to pay taxes on any gains she earns. Making TFSA contributions however does not influence one’s personal income tax amounts like an RRSP would for example.
my step mom arrived in Canada in 2010, can I give her the money to put into her TFSA? Any issues with gifting her this money? Thanks
Hi Balasubermanium,
There is no “gift tax” in Canada, so you can give your mom cash at any time, and she can do with it what she pleases (including investing in a TFSA). If you’re gifting her large amounts of money however, bear in mind that CRA may ask some questions.
Remember too that your gift to her should be a gift, and not a loan. If you plan on using her TFSA as a way to shelter your own money from taxes, which you plan on cashing out later, this is not permitted.
Hi there,
We soft-landed for 10 days in June 2019 without availing any benefits. We just opened a bank account, got our SINs and PR cards. Now we have returned to Canada as residents in July 2020. Since we are not filing taxes yet as this is our 1st year as a resident, I am unable to open a CRA account. How can I know my TFSA limit? Will it include 2019 and 2020? If I want to contribute for 2020, do I have to wait to open a CRA account so that CRA can assign me a limit or can I just start contributing from this year without any confirmation from CRA? I am just afraid that if no limit is assigned, I may have to pay taxes for over contribution. Please help.
Hi Talha,
Making contributions for 2020 shouldn’t be a problem. The maximum amount for 2020 is $6,000 per person, so if you deposit no more than this amount in a respective TFSA for each qualifying family member, there shouldn’t be an issue doing this before you have filed your first tax returns with CRA.
Eligible contribution room for 2019 is less clear. You may wish to consult with a a tax advisor, or give CRA a call directly in early 2021 once you’ve filed your first tax returns to see if you earned contribution room for that year. If you are eligible, you can always contribute the 2019 amount at any time. You don’t ever ‘lose’ contribution room with TFSAs.
Hi,
TFSA is for Permanent Residents?
Hi Binosh,
Yes, permanent residents of Canada who are 18+ are eligible to open TFSA accounts, as PRs have social insurance (SIN) numbers.
I arrived in Canada in 2014, and received my permanent residency in May 2017. Does my ability to contribute to a TFSA go all the way back to 2014 or does it start in 2017? Thanks
Hi Seth,
That would depend on your status between 2014-2017. If you had a valid social insurance number (SIN) during those years, than you should be able to use 2014 as your first year for contributions.
Either way, best to call CRA directly to discuss: 1-800-959-8281.
Hi! I arrived in Canada as a permanent resident in 2016, openend a TFSA and filed taxes normally since then. When looking at my contribution room, it’s showing me all the years since I turned 18 and adds them, so I have a lot of room… but I thought only the years in Canada count….?
Hi Linda,
It sounds like you are checking your contribution room amount on CRA’s website. Best to call them directly to double-check what your contribution room is, as the website is not always accurate. You are correct in thinking that your years as a permanent resident of Canada should only count as towards your TFSA contribution room. Please call CRA directly in order to get your exact contribution room amount: 1-800-959-8281.
Hello, what is a TSFA? Is there an interest that can someone earn?
Hi Michael,
A TFSA is a Tax-Free Savings Account that allows Canadians 18+ and over to save money, tax-free. It is registered with the government and allows for investment income including capital gains, dividends, and interest to grow and be withdrawn without paying additional taxes. You can find out more here: https://tfsahelper.ca/general-tfsa-information/what-is-a-tfsa/
If you are not comfortable with the stock market, you can open a high interest savings account for your TFSA. You can find out more, including approximate interest rates, here: https://tfsahelper.ca/investment-related/high-interest-savings-accounts/
Hi. I came to Canada in 2018 but no income made within Canada this year. Am I still eligible to contribute a max of 5500 of year 2018?
Hi Rosa,
TFSA contribution room is not based on income. If you were a Canadian citizen in 2018, yes, you could contribute $5500 for 2018, and an additional $6000 for 2019 for a total of $11,500. Call CRA if you are unsure, however. 1-800-959-8281.
hi i arrived in canada december 2015 and landed as a permanent resident..i would like to know if 2015 counts as a year for me for tfsa thank you!
Hi Benard,
As far as we know, the month of your arrival as a permanent resident doesn’t matter. If you came here in late 2015, you should still be eligible to use 2015’s contribution room towards your overall limit.
To be sure, check with Canada Revenue Agency at 1-800-959-8281.
Hi,
I came to Canada in September 2016, what is my contribution limit? Does the month influence the number of years?
Thanks
Hi Clarissa,
As far as we know, only the year that you arrived in Canada (assuming as a permanent resident), matters.
If you came in 2016 with PR status, your current contribution limit would be as follows:
2016: $5,500 +
2017: $5,500 +
2018: $5,500
—————
$16,500
Either way, a quick check with Canada Revenue Agency at 1-800-959-8281 is a good move.
Hi I have a TFSA account but I’m not sure how much I can contribute now.. I came in canada august 2014 and opened TFSA account year 2015. THANKS
Hi there,
The date you open a TFSA account does not affect contribution room. What matters is when you received your citizenship or permanent residency in Canada. Assuming you had one of these statuses as of 2014, your contribution room would be as follows:
2014: $5,500 +
2015: $10,000 +
2016: $5,500 +
2017: $5,500 +
2018: $5,500 +
——————
= $32,000
Best to call Canada Revenue Agency directly at 1-800-959-8281 to speak with an agent, but it would appear that your current contribution room is $32,000.
Hello, I arrived have been in Canada since 2014 with various visas and now I am a permanent resident since 2017. When I go to CRA it says I have the 57,500 of contribution room. Is this correct. It is the maximum. I would like to use it but I don’t want to be taxed.
Hi Chichi,
It’s best to call CRA directly to double-check, but it seems unlikely that your contribution room is $57,500. Hypothetically, even if you qualified for a TFSA in 2014, your contribution room would still be only $32,000, as per below:
2014: $5,500
2015: $10,000
2016: $5,500
2017: $5,500
2018: $5,500
——————
$32,000
Again, best to call CRA and speak with an agent. Sometimes what’s displayed online might not be fully accurate.
i have permanent resident since may 2017. how much i can contribute in TFSA?
Hi Ivan,
As far as we know, your contribution limit is currently $11,000. You earned $5,500 in contribution room the year you came to Canada (2017) + you will add the $5,500 allocated to all Canadians for 2018. Therefore, $5,500 + $5,500 = $11,000.
I became a landed resident in 2013. Till date I have contributed about $4000. What is the max amount I can contribute now. I want to max out my tfsa room.
Hi Tombee,
Assuming you haven’t made any withdrawls from your TFSA, you can use the contribution you accumulated ever year since and including 2013. So, as of 2018, you would have:
2013: $5,500
2014: $5,500
2015: $10,000
2016: $5,500
2017: $5,500
2018: $5,500
———–
$ 37,500 – $4,000 you’ve already deposited = $33,500 Total Contribution Room Available
Double check with CRA to be sure. You can call them at: 1-800-959-8281
I have account in Rbc and have opened TFSA and want to open RRSP ,is there any limitation can I open .
Hi Sam,
Yes, you can have both a TFSA and RRSP with RBC, or with another institution. The two accounts are very different.