TFSA Calculator
Calculate your TFSA contribution room and tax-free growth — Canada's Tax-Free Savings Account with $7,000 of new room in 2026.
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How to use this calculator
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Every Canadian resident 18+ accumulates $7,000 of new TFSA room each year (2026 amount, indexed to inflation).
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Total room since 2009: $109,000. If you've never opened a TFSA, you can contribute the full $109,000 immediately.
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Withdrawals are added back to your contribution room on January 1 of the following year.
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Unlike RRSP, TFSA contributions are not tax-deductible — but all growth and withdrawals are completely tax-free.
Frequently asked questions
What is the TFSA contribution limit for 2026?
The TFSA annual limit for 2026 is $7,000, the same as 2024 and 2025. If you have been eligible every year since the TFSA launched in 2009 — you were 18 or older and a Canadian resident — your cumulative lifetime room through 2026 is $109,000, less anything you have already contributed.
How is my TFSA contribution room calculated?
Room starts in the year you turn 18 (provided you are a Canadian resident with a SIN) and adds that year’s annual limit for every year after. Add back any amounts you withdrew in earlier years, then subtract everything you have contributed. Years when you were a non-resident do not add room. Your exact number is shown in CRA My Account.
When do TFSA withdrawals get added back to my room?
Withdrawals are added back to your contribution room on January 1 of the following year, not immediately. If you withdraw $10,000 in March and put it back in June of the same year, you may over-contribute unless you had other unused room. That is the most common way people trigger a penalty.
What happens if I over-contribute to my TFSA?
The CRA charges a tax of 1% per month on the highest excess amount held in that month, until you withdraw the excess or new room opens up. Withdrawing the excess by the end of the month stops further penalty. The calculator’s available room figure helps you stay under the limit.
What can I hold in a TFSA?
A TFSA can hold cash, GICs, bonds, stocks, ETFs, mutual funds and options, as long as the investment is a qualified investment. Interest, dividends and capital gains inside the account are tax-free. Be aware that US dividends paid on US-listed stocks held in a TFSA are subject to 15% US withholding tax, which the TFSA does not shelter.
Do TFSA withdrawals affect OAS, GIS or the Canada Child Benefit?
No. TFSA withdrawals are not counted as income, so they do not reduce income-tested benefits such as Old Age Security, the Guaranteed Income Supplement or the Canada Child Benefit. That is why a TFSA is often used to fund retirement spending once an RRSP has been converted to a RRIF.
Should I use a TFSA or an RRSP first?
The TFSA uses after-tax money and gives tax-free withdrawals; the RRSP gives a deduction now and taxes withdrawals later. If your income is lower now than you expect it to be in retirement, favour the TFSA; if it is higher now, favour the RRSP and put the refund into your TFSA. Many people use both, and the FHSA is a third option for a first home.
Can a non-resident contribute to a TFSA?
Non-residents do not earn new contribution room, and contributions made while you are a non-resident are subject to a 1% per month tax. You can keep your account open if you leave Canada, but you cannot add new money without penalty until you become a resident again.
TFSA calculator — 2026 limit, contribution room and tax-free growth
TFSA annual limits, 2009 to 2026
The TFSA annual limit is indexed to inflation and rounded to the nearest $500, so it has changed over time. Your total room is the sum of the limits for every year you have been eligible, which is why people who turned 18 earlier have more room than people who turned 18 recently.
| Years | Annual limit | Cumulative room at end of period |
|---|---|---|
| 2009–2012 | $5,000 | $20,000 |
| 2013–2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016–2018 | $5,500 | $57,500 |
| 2019–2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024–2026 | $7,000 | $109,000 |
How your room is calculated
Room = the sum of annual limits since you were first eligible + withdrawals made in previous years − contributions made. The calculator counts your years of eligibility back from 2026, so entering 10 years adds the limits for 2017 through 2026, which is $62,500. With a $30,000 balance that leaves $32,500 of available room. Entering 18 years gives the full $109,000.
Worked example: $30,000 now, $7,000 a year for 20 years at 6%
Starting with $30,000 and adding $7,000 a year at the start of each year, a 6% annual return grows the account to about $369,163 after 20 years. You contribute $170,000 in total ($30,000 plus 20 × $7,000), so $199,163 of the final balance is investment growth — and none of it is taxed when you withdraw. In a taxable account the same growth would be reduced by tax on interest, dividends and capital gains each year. The figure is a projection from a constant return, not a forecast; real returns vary from year to year.
TFSA, RRSP or FHSA: choosing the right account
The three accounts differ in when you get the tax break. A TFSA gives none up front but tax-free growth and withdrawals, with room to put money back. An RRSP gives a deduction now and taxes withdrawals as income, which suits people whose marginal rate today is higher than it will be in retirement. An FHSA allows a deduction on contributions and tax-free withdrawals for a first home. Because TFSA withdrawals do not count as income, they are also the least disruptive source of retirement income for OAS and GIS clawbacks.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →