This calculator is for general illustration purposes only. The result is based on the information you provide and various other assumptions. Actual returns, total annual income, marginal tax rate and other factors may vary. Calculation assumes: both accounts earn only ordinary income (such as interest), compounded annually; tax is deducted annually from the taxable account at the estimated marginal tax rate; contributions are made at the start of each contribution period; and a 52-week year.
The TFSA calculator uses an assumed tax rate to calculate income from non-registered investments. The assumed tax rate is the marginal rate for ordinary income that applies for the amount of gross income and province/territory entered by the user.. There is risk that the user’s tax rate could be higher (or lower) than the assumed tax rate, and the projected after-tax income from non-registered investments could be lower (or higher), if:
- Investments earn capital gains, rather than ordinary income.
- Investments earn Canadian dividends, rather than ordinary income.
- The amount of investment income exceeds the amount between the gross income and the top of the marginal tax bracket.
This calculation is approximate and for information purposes only. Actual savings may differ. Please do not rely solely on this information or result when making financial decisions; please visit your branch or speak to an investment advisor.