- The CRA set the 2026 TFSA dollar limit at $7,000, the same as in 2024 and 2025.
- Adding every yearly limit from 2009 to 2026 gives $109,000 of total room for someone eligible the whole time.
- Money you withdraw comes back as new room on January 1 of the next year, not right away.
- Over-contributions are taxed at 1% a month on the highest excess amount until you take it out.
Checked October 2026
What a TFSA is
A tax-free savings account (TFSA) is a registered account that can hold savings or investments. Contributions aren’t tax deductible, but the interest, dividends and capital gains you earn inside it are generally tax-free, even when you withdraw them.
The CRA describes three types: a deposit TFSA at a bank or credit union, which works like a savings account or GIC; an annuity contract with an insurance company; and an arrangement in trust, usually a mutual fund or trading account. Banks, insurance companies, credit unions and trust companies can all issue them.
To open one, you need to be a resident of Canada for tax purposes, be 18 or older and have a valid social insurance number. Where the age to sign a contract is 19, you can open the account at 19 and still use the room from the year you turned 18.
The 2026 limit, and 2027
The TFSA dollar limit for 2026 is $7,000. This is the new room everyone eligible gets for the year, on top of what they already had. As of October 23, 2026, the CRA hasn’t published a 2027 TFSA limit; its limits table stops at 2026. We’ll add it when the CRA does.
| Year | Annual limit | Total since 2009 |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
| 2019 | $6,000 | $63,500 |
| 2020 | $6,000 | $69,500 |
| 2021 | $6,000 | $75,500 |
| 2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
| 2025 | $7,000 | $102,000 |
| 2026 | $7,000 | $109,000 |
Source: Canada Revenue Agency limits table. The running total is our sum of the CRA’s yearly limits and applies only if you were 18 or older and a resident of Canada every year since 2009.
If you turned 18 after 2009, start the count from the year you turned 18. Someone who turned 18 in 2024, for example, has $21,000 of total room in 2026 if they’ve never contributed: $7,000 for each of 2024, 2025 and 2026.
How your contribution room builds
Room starts to build in the year you turn 18, and you don’t need to open a TFSA for it to add up. The CRA’s formula for your available room in a year is:
- The TFSA dollar limit for the current year
- Plus unused room from previous years, which carries forward with no expiry
- Plus any withdrawals you made in the previous year
- Minus contributions you’ve already made this year
The CRA’s own example: Alex had $6,000 of unused room at the end of 2025 and withdrew $4,000 that year. Add the $7,000 limit for 2026 and Alex starts 2026 with $17,000 of room.
If you move to Canada, room starts building on the day you become a resident, and years before that add nothing. Your room is shared across every TFSA you hold, so two accounts don’t double it. Our TFSA contribution room calculator runs the formula for you.
Withdrawals come back next year
You can take money out of a TFSA at any time, but the amount is only added back to your room on January 1 of the next calendar year. Putting it back in the same year uses up room you may not have.
What an over-contribution costs
Anything above your room is an excess amount, and the CRA taxes it at 1% per month, based on the highest excess in your account in each month it stays there. That applies even if the over-contribution was a mistake.
- Withdraw the excessTake it out as soon as possible. Your financial institution reports the withdrawal to the CRA, so you don’t need to call.
- File a TFSA ReturnReport the excess on Form RC243 with Schedule A (RC243-SCH-A).
- Pay by June 30The return and the tax are due by June 30 of the year after the excess.
The CRA’s example: a $2,000 over-contribution made in June and removed in September costs $20 a month for June to September, $80 in total. Removed in June, it would have cost $20.
How to check your room
Sign in to CRA My Account, go to Savings and pension plans, choose View TFSA details and open Contribution room. Form RC343 is a worksheet if you’d rather do the maths yourself.
Your notice of assessment is a good moment to review your registered accounts each spring, alongside the RRSP deadline.
What you can hold in a TFSA
Qualified investments include cash, GICs and other deposits, most securities listed on a designated stock exchange such as shares and ETF units, mutual funds and segregated funds, government savings bonds, and investment-grade bonds. Holding a non-qualified or prohibited investment triggers a 50% tax on its fair market value. The CRA also warns that trading like a professional can get a TFSA deregistered.
If you want a simple deposit TFSA, these are the TFSA savings accounts we review:
TFSA vs RRSP vs FHSA
| TFSA | RRSP | FHSA | |
|---|---|---|---|
| New room | $7,000 for 2026 | 18% of last year’s earned income, up to $33,810 for 2026 | $8,000 a year, $40,000 lifetime |
| Contributions deductible | No | Yes | Generally yes |
| Withdrawals | Generally tax-free | Generally taxable | Tax-free for a qualifying first home; otherwise taxable |
| Who can open | Residents 18 or older with a SIN | Anyone with room, until the end of the year they turn 71 | First-time home buyers aged 18 to 71 |
Source: Canada Revenue Agency. FHSA carry-forward is capped at $8,000, and the account ends after 15 years at most.
Frequently Asked Questions
What is the TFSA contribution limit for 2026?
$7,000. That’s the new room added for 2026, on top of any unused room and last year’s withdrawals.
What was the TFSA contribution limit for 2025?
$7,000, the same as 2024 and 2026.
What is the 2027 TFSA limit?
The CRA hadn’t published it as of October 23, 2026. Its limits table lists TFSA limits up to 2026.
How much TFSA room do I have if I’ve never contributed?
If you were 18 or older and a Canadian resident every year since 2009, $109,000 in 2026. Otherwise, add the yearly limits from the year you turned 18 or became a resident.
What is a TFSA?
A registered account for savings or investments. Contributions aren’t deductible, but income earned inside it is generally tax-free, even when you withdraw it.
Does unused TFSA room carry forward?
Yes. Unused room carries forward to future years with no expiry.
When do TFSA withdrawals get added back to my room?
On January 1 of the next calendar year. Re-contributing in the same year can cause an over-contribution.
What happens if I over-contribute to my TFSA?
The CRA charges 1% per month on the highest excess amount for each month it stays in the account. Withdraw it quickly and file Form RC243 by June 30 of the next year.
How do I check my TFSA contribution room?
Sign in to CRA My Account and open View TFSA details. The CRA figure is updated only in the spring, so check this year’s transactions with your bank.
Do I need to open a TFSA to build room?
No. Room builds from the year you turn 18 whether or not you have an account.
Try this next
Sources, checked October 2026
- Canada Revenue Agency: Calculate your TFSA contribution room canada.ca
- Canada Revenue Agency: MP, DB, RRSP, DPSP, ALDA, TFSA limits and YMPE canada.ca
- Canada Revenue Agency: TFSA contribution room (before you contribute) canada.ca
- Canada Revenue Agency: Opening a TFSA canada.ca
- Canada Revenue Agency: Withdrawing from a TFSA canada.ca
- Canada Revenue Agency: Tax on excess TFSA amounts canada.ca
- Canada Revenue Agency: If you over-contribute to a TFSA canada.ca
- Canada Revenue Agency: What a TFSA is canada.ca
- Canada Revenue Agency: Tax on non-permitted TFSA investments canada.ca
- Canada Revenue Agency: How contributions affect your RRSP deduction limit canada.ca
- Canada Revenue Agency: Contributing to your FHSA canada.ca
General information for Canadians, not financial, tax or legal advice. Rules and menus change, so confirm details with your bank, lender or the Government of Canada. See our methodology.