The effects of blockage ratio and boundary proximity on tidal turbine performance are quantified in this study using computational fluid dynamics (CFD). Reynold averaged Navier–Stokes (RANS) equations are solved using the commercial CFD code ANSYS CFX. Steady-state analyses are performed using a rotating frame of reference technique, and a shear stress transport turbulence model is used. Results from the numerical model are validated with experimental data. RANS CFD simulations are performed over tip speed ratios (TSRs) from 1 to 9. The simulation-based performance curve approximately match the experimental performance curve, with errors ranging from 4 to 9%. Blockage ratios from 0.02 to 0.19 are evaluated for a constant depth of two rotor diameters to study the effect of blockage on turbine performance. Results show that shaft power increased by 13 and 47% for TSRs of 5.11 and 9.05, respectively, when the blockage ratio increased from 0.02 to 0.19. Additionally, for these TSRs and blockage ratios the turbine thrust increased by 7 and 10%. The presence of a boundary layer resulted in a calculated thrust increases between 1.6 and 2.3% and power between 2.7 and 3.5% for the entire range of evaluated blockage ratios.