Canadian TFSA Calculator
Calculate your 2026 contribution room and project tax-free growth. Annual limit: $7,000. Lifetime max: $109,000.
Your TFSA Contribution Room
TFSA started in 2009. If you turned 18 before 2009, select 2009 or earlier.
Net contributions (deposits minus withdrawals added back). Check My Account on the CRA website.
2026 Key Facts
- Annual limit: $7,000
- Cumulative max (since 2009): $109,000
- Withdrawals are 100% tax-free
- Withdrawn room returns January 1 of next year
- Over-contribution penalty: 1% per month
Your Room Summary
Year-by-Year Breakdown
| Year | Annual Limit | Cumulative |
|---|---|---|
| 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 (current) | $7,000 | $109,000 |
Planning your retirement savings? Calculate your take-home pay to see how much you can contribute.
How the TFSA Works
The Tax-Free Savings Account (TFSA) was introduced by the Canadian government in 2009 to help Canadians save and invest without paying tax on investment income or withdrawals. Any Canadian resident who is 18 or older with a valid Social Insurance Number (SIN) can open a TFSA.
Unlike an RRSP, contributions to a TFSA are made with after-tax dollars, so you don't get a deduction. However, all investment income earned inside the account, including interest, dividends, and capital gains, grows completely tax-free. Withdrawals are also tax-free and do not affect income-tested government benefits like Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).
Each year, the government sets an annual TFSA contribution limit. For 2026, the limit is $7,000. Your contribution room accumulates every year starting from the year you turn 18 (or from 2009 if you were already 18 then). If you turned 18 before 2009 and have never contributed, your total room as of 2026 is $109,000.
When you withdraw from your TFSA, the withdrawn amount gets added back to your contribution room on January 1 of the following year. This makes the TFSA uniquely flexible: you can use it for short-term goals, emergency funds, or long-term retirement savings.
TFSA vs RRSP: Which Should You Choose?
| Feature | TFSA | RRSP |
|---|---|---|
| 2026 Contribution Limit | $7,000 | 18% of income (max $32,490) |
| Tax Deduction on Contributions | No | Yes |
| Tax on Withdrawals | None | Taxed as income |
| Withdrawal Flexibility | Anytime, tax-free | Taxed + withholding |
| Room Added Back After Withdrawal | Yes (next Jan 1) | No (room lost) |
| Affects Government Benefits | No | Yes (OAS clawback) |
| Best For | Lower income, flexible savings | Higher income, retirement focus |
Many financial advisors recommend using both accounts strategically. Contribute to your RRSP when your marginal tax rate is high (to maximize the deduction), and use the TFSA for additional savings or when your income is lower.
TFSA Annual Contribution Limits (2009-2026)
| Year | Annual Limit | Cumulative Total |
|---|---|---|
| 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 (current) | $7,000 | $109,000 |
The annual TFSA dollar limit is indexed to inflation and rounded to the nearest $500. The notable exception was 2015, when the government temporarily raised the limit to $10,000 before reverting to the indexed amount in 2016.
Frequently Asked Questions
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