How much more could you keep by investing inside a TFSA?
Most Canadians invest in both registered and non-registered accounts without ever seeing the real difference. Every dollar of growth inside a TFSA is yours to keep — completely tax-free forever. Every dollar of growth outside a TFSA gets taxed. This calculator shows you exactly how much that difference is worth over time. No sign-up required.
0%
Tax on TFSA growth and withdrawals
$95,000+
Total TFSA room available (Born before 1992)
Free
This calculator
Inside a TFSA, every dollar of growth is 100% yours. No tax on interest, dividends, or capital gains — ever.
$7,000
contribution room 2024
$95,000+
total room since 2009
$0
tax on withdrawal
Your Investment Profile
Your Money
Max TFSA: $7,000/yr (2024).
Your Tax Situation
Combined federal + provincial marginal rate.
TFSA Room
Withdrawals add back to room next January 1.
Available TFSA Room (Est.)
$95,000
Not sure how much TFSA room you have?
We can help you track down your exact contribution limit.
Book a Free ReviewTFSA
$316,068
Tax paid: $0
After-tax value: same as above
100% tax-free
TAXABLE ACCOUNT
$316,068
Estimated tax paid: $67,232
After-tax value: $248,836
Tax drag: 24.8% of growth lost
By using a TFSA, you keep $67,232 more — money that would have gone to taxes.
TFSA FINAL VALUE
$316,068
TAXABLE AFTER-TAX
$248,836
TAX SAVED
$67,232
EFFECTIVE TAX DRAG
24.8%
Growth Comparison Over Time
Annual Tax Drag Table
| Year | TFSA Value | Taxable Pre-Tax | Tax Paid That Year | Taxable After-Tax | TFSA Advantage |
|---|---|---|---|---|---|
| 1 | $32,100 | $32,100 | $520 | $31,580 | +$520 |
| 2 | $39,697 | $39,697 | $634 | $38,507 | +$1,190 |
| 3 | $47,826 | $47,826 | $754 | $45,799 | +$2,027 |
| 4 | $56,524 | $56,524 | $880 | $53,475 | +$3,049 |
| 5 | $65,830 | $65,830 | $1,013 | $61,555 | +$4,275 |
How your investment income type affects taxes:
INTEREST INCOME
Fully taxed at marginal rate. $1,000 in interest costs you $330 in tax at your bracket. Worst tax treatment.
ELIGIBLE DIVIDENDS
Tax credit reduces effective rate. $1,000 in dividends costs approximately $231 in tax. Better than interest.
CAPITAL GAINS
Only 50% included in income. $1,000 in capital gains costs approximately $165 in tax. Most efficient non-registered income.
Inside a TFSA, ALL these are taxed at 0% regardless of income type.
TFSA Contribution Room Calculator
Total Room Available
$95,000
Room Used (Balance)
$0
Available Room
$95,000
| Year | Annual Limit | Cumulative Room |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
| 2019 | $6,000 | $63,500 |
| 2020 | $6,000 | $69,500 |
| 2021 | $6,000 | $75,500 |
| 2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
Withdrawal Flexibility
| Feature | TFSA | RRSP | Non-Registered |
|---|---|---|---|
| Contribution tax deduction | No | Yes | No |
| Growth tax | None | Deferred | Annual |
| Withdrawal tax | None | Full income | Capital gains |
| Withdrawal room restored | Yes (next Jan 1) | No | N/A |
| Impact on benefits (OAS, GIS) | None | Yes | Depends |
| Best for | Flexibility | Retirement income splitting | After maximizing registered |
Over 20 years, your $25,000 grows to $316,068 inside a TFSA — completely tax-free. In a taxable account at your 33% marginal rate, the same investment grows to $316,068 before tax but only $248,836 after tax — a difference of $67,232 that goes straight to the government instead of your family.
How much TFSA room do you have?
TFSA contribution room has been accumulating since 2009 for eligible Canadians. Here is the total room available by birth year.
| Born 1991 or earlier | Full room since 2009 — approx. $95,000 total (as of 2025). |
| Born 1992 or later | Room since age 18 — varies by birth year. |
Your personal contribution room depends on your birth year, previous contributions, and withdrawals. Check your exact room at canada.ca or contact Sarah.
Not sure how much room you have? Ask Sarah →The account you invest in matters as much as what you invest in.
Tax drag is invisible but devastating
Most investors focus entirely on their rate of return and never think about the tax being paid on that growth each year. On a non-registered account you may be losing 0.5% to 2% of your effective return annually to tax — silently — every single year.
Withdrawals are completely flexible
Unlike an RRSP there is no tax on TFSA withdrawals and withdrawn amounts are added back to your contribution room the following year. A TFSA is the most flexible savings vehicle Canada has ever created.
Every Canadian should max their TFSA first
Before investing in non-registered accounts most financial planners recommend filling your TFSA to the limit first. The tax-free compounding over decades is one of the most powerful wealth-building tools available to ordinary Canadians.
The most common TFSA mistakes Sarah sees.
Mistake 1: Keeping cash in the TFSA
A TFSA is an account not an investment. Keeping it in a savings account earning 2% wastes its potential. It should hold growth investments.
Mistake 2: Over-contributing
Contributing more than your available room triggers a 1% per month penalty tax. Always verify your room at CRA before contributing.
Mistake 3: Not re-contributing withdrawals
When you withdraw from a TFSA that room comes back the following January 1st. Many Canadians forget to re-contribute and lose years of compounding.
Mistake 4: Not opening one at all
Approximately 35% of eligible Canadians have never opened a TFSA. Every year without one is a year of tax-free room wasted forever.
Is your TFSA working as hard as it could be?
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