What is the penalty for over contribution to a Tax-Free Savings Account (TFSA)?

 

If, at any time in a calendar month, there is an excess TFSA amount in your Account, you are liable to a 1% tax on your highest excess TFSA amount in that month. The 1% per month tax will apply on a pro‐rated basis for each month that the excess amount remains in a TFSA until the excess amount is removed or your limit increases to accommodate the excess amount. For further information or for examples of penalty calculations, please go to the CRA website.