I over-contributed to my TFSA. What now?
Withdraw the excess: the tax stops the month after. A $2,500 deposit made twice in February and withdrawn in October costs $225, reported on form RC243.
Tax on the excess
$225
See how
Over from February$2,500
1% a month$25
Months over, February to October9 months
Tax$225
The month you withdraw it still counts, because the tax is on the highest excess in each month. Waiting for the new limit on 1 January means paying every month until then.
Form RC243 and the payment are due by 30 June 2027, whether or not CRA has written to you.
CRA can waive or cancel the tax when the excess came from a reasonable error and was withdrawn. You ask by letter, saying what happened; the decision is CRA’s.
Sources
Checked against the CRA’s pages on .