Who this is for
Newcomers to Canada, international students who have become residents, Canadians returning after years abroad, and anyone who kept a TFSA while living outside Canada.
The five points
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Room starts at residency, not at 2009. The annual limit is $7,000 for 2024, 2025 and 2026. Your room accumulates from the first year you were 18 or older, had a SIN, and were a resident of Canada. Online calculators that start from 2009 assume lifelong residency.
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No room while non-resident. Years spent outside Canada as a non-resident add nothing. When you return, room resumes from the year you become resident again.
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Contributions while non-resident are penalized. 1% per month on the amount, for as long as it stays in the account. The account can stay open while you are away; contributions should not.
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Withdrawals while abroad do not restore room until you return. Money taken out while non-resident is added back as room only in the year after you become resident again.
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Check the CRA figure, then check it again. The CRA’s My Account shows contribution room, but it is only as current as the information banks have sent. It does not know your residency dates unless you told the CRA. Confirm the dates yourself.
One thing many people do not realize
A contribution made while you were a non-resident of Canada is taxed at 1% per month for every month it stays in the account. Unused room from earlier years does not protect it. Returning residents who topped up a TFSA from abroad can carry that charge for years without a letter. So can newcomers who opened one before their residency date.
What to prepare
- The date you became a resident of Canada, or the dates you left and returned
- TFSA statements showing contributions and withdrawals by date
- Your CRA My Account contribution room figure
- Whether the CRA was told of your departure or return
When professional help may make sense
If you have already over-contributed, withdraw the excess. Where the penalty applies, file the TFSA return and consider asking for relief. The longer the excess stays, the larger the charge.
How Rex Tax may be able to help
We work out your room from your residency history, handle the TFSA return if a penalty applies, and prepare your Canadian return. Our guide on tax residency after moving abroad covers the departure side.
Official sources
- CRA: Before you contribute to a TFSA (dollar limits; when room starts)
- CRA: How non-residency affects your TFSA
This guide is general information, not advice about your situation. It reflects the rules for the 2025 and 2026 tax years. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.