TFSA Over-Contribution Penalties Archives

TFSA Over-Contribution Penalties in 2026: The 1% Per Month Rule Explained

January 20, 2026
Nizam Shajani, CPA, CA, TEP, LL.M (Tax), LL.B, MBA, BBA
Accounting, Personal Tax

Income Tax Act s.207.02 You contributed to your TFSA. Then you transferred funds between accounts. Or you recontributed too early after a withdrawal. Then CRA sends a notice: “You have excess TFSA contributions.” Under ITA s.207.02, excess TFSA contributions are…