TFSA Calculator

The 2026 TFSA limit — and the full table since 2009

The CRA confirmed the 2026 TFSA dollar limit at $7,000 — unchanged from 2025's $7,000 (the limit is indexed to inflation and rounded to the nearest $500, so it doesn't move every year). For someone eligible since the TFSA began in 2009, that brings the lifetime cumulative limit to $109,000 for 2026. Most TFSA calculators (and even the CRA's own contribution-room page) send you to a separate article to see the full year-by-year table — this tool shows it directly below, always current.

How your TFSA contribution room is actually calculated

The CRA's formula is: this year's dollar limit + any unused room from previous years + withdrawals made last year − contributions already made this year. In practice, that means your room is the sum of every annual limit since you became eligible, minus everything you've ever contributed, plus any withdrawals that have already carried forward.

The tricky part is timing withdrawals. In the CRA's own worked example, "Alex" withdrew $4,000 in October — but that amount wasn't added back to Alex's room until January 1 of the following year, on top of the new annual limit. Our own worked example: someone eligible since 2009 who maxed out every year through 2024, contributed the full $7,000 in 2025, then withdrew $5,000 that same year, has $12,000 of room in 2026 — the new $7,000 limit plus the $5,000 that carried forward from last year's withdrawal.

Over-contribute and it costs 1% a month

Contribute more than your available room and the CRA charges a 1% tax per month on the highest excess amount that month, for as long as the excess stays in the account. For example, someone who turned 18 in 2020 has $45,500 of room by 2026 — if they'd contributed $50,000 instead, they'd be over by $4,500, costing about $45.00 a month until it's withdrawn.

One more trap: your CRA My Account balance is only updated once a year, in the spring, using the previous year's transactions reported by financial institutions in late February. It won't reflect a contribution or withdrawal you made a few weeks ago — the CRA itself recommends keeping your own records, which is exactly what the calculator above lets you do.

TFSA vs a taxable account: what the tax shelter is actually worth

Contribute $7,000 a year for 20 years at a 5% return, and a TFSA grows to $231,462 — completely tax-free. Put the same money in a regular taxable account, and at a 30% marginal tax rate (assuming all of the growth is taxed annually, a conservative simplification), it grows to only $197,958. That's a $33,504 difference from the exact same contributions — the entire gap is the tax shelter. Both your expected return and your marginal tax rate are editable in the growth tab, because they vary a lot by investment mix and by province/income.

TFSA vs RRSP, in three sentences

A TFSA is funded with after-tax money and never taxed again — withdrawals are always tax-free and don't affect income-tested benefits. An RRSP gives you a tax deduction now, but withdrawals are taxed as regular income later, which usually makes sense if your tax rate in retirement will be lower than it is today. Most people benefit from using both: RRSP room for the deduction while working, TFSA room for flexible, tax-free growth on top.