TFSA for non-residents in 2026: what changes when you leave Canada
Enter a contribution made while a non-resident and the months it stays in the account: the calculator works out the 1% monthly tax.
1% monthly tax
$840
$70 a month for 12 months.
| Highest excess in the month | $7,000 |
| Rate | 1% a month |
| After a year | $840 |
Income earned on the excess can be taxed separately; the CRA can waive the tax on request if the error is fixed quickly.
Prepared by Radif Partners · How we calculate · limits and tax tables read on canada.ca · estimates only, not a notice of assessment
A Canadian resident who moves abroad can keep their TFSA: income earned in the account and withdrawals are not taxed in Canada. On the other hand, a calendar year spent entirely as a non-resident gives no room, and any contribution made while a non-resident is taxed at 1% a month on the full amount, even if you still had unused room. A $7,000 contribution left in for a year costs $840. The year you leave counts in full: the $7,000 limit is not reduced, and you can contribute up to the day you become a non-resident. Someone born in 1985 who left in 2022 and came back in 2026 has lost the limits for the three full years spent away, $20,500. Withdrawals made abroad come back as room the following year but can only be used after you return. The country you live in applies its own rules: the TFSA exemption is a Canadian rule, and the account's income may be taxed there.
Who counts as a non-resident for TFSA purposes
Tax residency is what matters, not citizenship. The Canada Revenue Agency says you may be considered a non-resident if you normally live in another country, or if you have no residential ties in Canada and either live abroad all year or stay in Canada fewer than 183 days. On the other hand, someone who leaves but keeps significant ties, such as a home, a spouse or dependants in Canada, may remain a factual or deemed resident, and the ordinary TFSA rules keep applying. For the Agency's opinion on your case, there is Form NR73, meant for people leaving.
The account stays open and untaxed in Canada
Leaving does not force you to close the TFSA. While it stays open, the income it earns and the withdrawals you make are not taxed in Canada. You can leave the savings invested and take money out when you need it. A withdrawal made while you are a non-resident is added to your room the following year, as usual, but that room only becomes usable once you are a resident again.
No new room for full years away
A year only gives you the limit if you are a resident of Canada at some point in it. A calendar year spent entirely as a non-resident therefore gives nothing. The year you leave counts in full: the limit is not prorated, and you can contribute up to the date you become a non-resident. The year you come back also gives the full limit. Lost years are never made up.
| Situation | Room for the year | Contribute? |
|---|---|---|
| Year you leave | Full limit ($7,000 in 2026) | Yes, up to the date you leave |
| Full year abroad | No new room | No: 1% a month on the contribution |
| Withdrawal while non-resident | Added back the next year | Usable only after you return |
| Year you return | Full limit | Yes, once a resident |
Take someone born in 1985, resident all their life, who left to work abroad in 2022 and came back in 2026. The years 2022 and 2026 count; 2023, 2024 and 2025, spent entirely abroad, do not. Their accumulated limits drop to $88,500 instead of $109,000, $20,500 less. The calculator below removes those years with the field for years outside Canada.
Your room after years abroad
TFSA room available in 2026
$88,500
| Limits added up, 2009 to 2026 | $88,500 |
| Minus past contributions | $0 |
| Plus past withdrawals | $0 |
| Room on January 1, 2026 | $88,500 |
Contributing as a non-resident: 1% a month on the whole amount
A non-resident with a SIN can technically put money into a TFSA, but every contribution made while a non-resident is taxed at 1% a month on its full amount, even if you had unused room to cover it. The tax runs until the contribution is withdrawn in full and designated as a withdrawal of non-resident contributions, or until you become a resident again. It does not apply in the month of the full withdrawal or the month you return.
| Contribution | 3 months | 6 months | 12 months |
|---|---|---|---|
| $2,000 | $60 | $120 | $240 |
| $5,000 | $150 | $300 | $600 |
| $7,000 | $210 | $420 | $840 |
Two differences from an ordinary excess matter. First, a partial withdrawal does not reduce the tax proportionally: you must take out the whole contribution to stop it. Second, the two taxes can stack. Someone with $1,500 of room left who puts in $4,000 as a non-resident, for six months, pays $240 on the non-resident contribution and $150 on the $2,500 excess. These taxes are reported on Form RC243, with Schedule B for non-resident contributions, by June 30 of the following year. The excess rules are on the TFSA over-contribution page.
Tax in the country where you live
The TFSA exemption is a rule of Canadian law. The guide says a non-resident is not taxed in Canada on the account's income or withdrawals; it says nothing about tax in the country where you live. That country applies its own rules and may treat income earned in the TFSA as ordinary income. Canada has tax treaties with many countries to avoid double taxation, but their effect on a TFSA depends on each treaty. The guide also notes that a foreign dividend paid into a TFSA may be subject to withholding tax by the country that pays it. Before you go, check with the tax authority of your future country. For coming back, the TFSA for newcomers page explains how room starts again.