TFSA Over-Contribution Penalty Calculator

Find out how much you owe in TFSA over-contribution penalties — and how to fix it.

Your TFSA Room

Total Contribution Room — from CRA My Account

Current TFSA Balance — total across all TFSAs

Over-Contribution Details

Excess Amount — if known

Month Over-Contribution Began

Month You'll Withdraw the Excess

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Over-Contribution Penalty

total penalty owed to CRA

Excess Amount

over your limit

Monthly Penalty

1% per month

Months Penalized

until withdrawn

Withdraw to Fix

remove ASAP

Your TFSA vs Your Limit

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Monthly Penalty Breakdown

MonthExcessPenaltyCumulative

TFSA Room Calculation

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Current TFSA Balance (contributions){{ balanceStr }}

Over-Contribution Amount{{ excessStr }}

Total Penalty Owing{{ penaltyStr }}

Penalty at Different Over-Contribution Amounts

ExcessMonthly6 Months12 Months

Note: The 1% penalty is charged on the highest excess amount in each month, reported on Form RC243 (TFSA Return) and due by June 30 of the following year. The CRA may waive penalties in cases of reasonable error — you can write a letter requesting relief. Investment gains inside your TFSA do NOT count as contributions. Check CRA My Account for your official contribution room.

TFSA Over-Contribution Penalties

If you contribute more to your TFSA than your available room, the CRA charges a penalty of 1% per month on the highest excess amount for each month it remains. This adds up quickly — a $10,000 over-contribution costs $100/month, or $1,200 if left for a full year.

The most common cause is re-contributing money you withdrew earlier the same year. When you withdraw from a TFSA, that room doesn’t come back until January 1st of the following year. Putting it back before then uses new room — which you may not have. Other causes include having multiple TFSA accounts (room is shared), or confusion about direct transfers vs withdraw-and-recontribute.

Disclaimer: The 1% penalty applies to the highest excess amount in each month and is reported on CRA Form RC243, due June 30 of the following year. Investment gains inside your TFSA do not count as contributions and don’t affect your room. The CRA may waive penalties for reasonable errors — you can request relief in writing. Check CRA My Account for your official contribution room. This calculator provides estimates only.