TFSA Contribution Room & Growth Calculator 2026
Your TFSA contribution room from the year you turned 18 ($109,000 cumulative since 2009), room restored by withdrawals, over-contribution check, projected tax-free growth from monthly contributions and the tax you avoid versus a taxable account.
| Cumulative limit since you became eligible | — |
|---|---|
| Less contributions / plus restored withdrawals | — |
| Room on 1 January next year | — |
| Over-contribution check | — |
| Projected balance | — |
| Growth that is tax-free | — |
| Tax saved vs a taxable account | — |
| Years to fill your room at this pace | — |
In short
The TFSA limit for 2026 is $7,000, bringing cumulative room to $109,000 for anyone eligible since 2009; growth and withdrawals are tax-free, withdrawn amounts are added back to room on 1 January of the next year, and over-contributions are taxed at 1% a month. $55,000 plus $500 a month at 6% grows to about $403,000 in 20 years with no tax on the $228,000 of growth.
Who this is for: Savers working out unused TFSA room, planning monthly contributions, or checking the effect of withdrawals and re-contributions.
TFSA contribution room in 2026 and how it grows
A Tax-Free Savings Account takes after-tax money but every dollar of interest, dividends and capital gains inside it — and every withdrawal — is tax-free. Room accumulates from the year you turn 18: $5,000 a year for 2009–2012, $5,500 for 2013–2014, $10,000 in 2015, $5,500 for 2016–2018, $6,000 for 2019–2022, $6,500 in 2023 and $7,000 for 2024, 2025 and 2026 — $109,000 in total for someone eligible since 2009.
- Withdrawals come back: whatever you take out is added to your room on 1 January of the next year, not immediately — re-contributing in the same year can breach the limit.
- Penalty: 1% a month on any excess, and up to 100% on gains from deliberate over-contributions.
- No effect on benefits: TFSA withdrawals do not count as income, so they never trigger the OAS clawback or reduce GIS — a key advantage over RRSP/RRIF income in retirement.
- What to hold: growth assets benefit most; US dividends suffer 15% withholding inside a TFSA (unlike an RRSP), and day-trading can be treated as business income.
- RRSP vs TFSA: use the RRSP when your rate now exceeds your rate in retirement; otherwise the TFSA — and never leave TFSA room empty while holding taxable investments.
Assumptions
- Room = sum of annual limits from max(2009, year eligible) to 2026 − contributions + prior-year withdrawals; next-year room adds $7,000 and this year's withdrawals.
- Projection: balance × (1 + r)ⁿ + monthly contributions compounded monthly; growth = value − money put in.
- Tax avoided ≈ growth × marginal rate × 60% (a blend of interest, dividend and capital-gains treatment).
Worked example
Cumulative limit $109,000 − $40,000 contributed = $69,000 of room now ($76,000 on 1 January 2027). The balance plus $500 a month grows to about $403,100 in 20 years, of which $228,100 is tax-free growth — roughly $41,000 of tax avoided at a 30% marginal rate. At $500 a month the existing room takes 11.5 years to fill.
Frequently asked questions
What is the TFSA limit for 2026?
$7,000 — unchanged from 2024 and 2025 — bringing the cumulative room since 2009 to $109,000 for anyone who was 18 or older in 2009 and resident throughout.
How do I find my TFSA room?
Add the annual limits from the year you turned 18, subtract all contributions and add back withdrawals from previous years; CRA My Account shows it but is usually a year behind your latest transactions.
Can I put the full $109,000 in at once?
Yes if you have never contributed and were eligible since 2009 — the room is cumulative with no expiry.
What happens if I withdraw and put it back?
The withdrawn amount is added to your room on 1 January of the following year; re-contributing before then uses current room and may create an over-contribution taxed at 1% a month.
Is TFSA income taxed in retirement?
No — withdrawals are not income, so they do not affect Old Age Security, the Guaranteed Income Supplement or age credits, unlike RRSP and RRIF withdrawals.
Should I pay down my mortgage or fill my TFSA?
Compare the mortgage rate with your expected after-tax return: at a 4.5% mortgage and a 6% expected TFSA return the TFSA edges ahead, but paying down debt is risk-free; many split the difference.
Can a non-resident contribute to a TFSA?
No — contributions while non-resident attract a 1% per month penalty, though the account can stay open and keep growing tax-free in Canada.
What investments can a TFSA hold?
Cash, GICs, stocks, bonds, ETFs and mutual funds — the same qualified investments as an RRSP; it is an account type, not a savings account.
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