TFSA Calculator Canada 2026

The CRA confirmed the TFSA annual contribution limit for 2026 at $7,000 — unchanged from 2024 and 2025. Canadians who were 18 or older in 2009 and have never contributed have a cumulative lifetime room of $109,000 as of January 1, 2026. Unused room carries forward indefinitely.

Over-contributing triggers a CRA penalty of 1% per month on the excess amount for every month it remains in the account. Unlike the RRSP, there is no $2,000 buffer — even $1 over your room incurs the penalty. Withdraw the excess immediately to stop the penalty from accumulating, and file CRA Form RC243 if you owe penalty tax.

No — withdrawn amounts are not added back to your contribution room until January 1 of the following year. Re-contributing the same amount in the year of withdrawal (without having unused room) creates an over-contribution. This is the most common TFSA mistake. Always verify your room in CRA My Account before re-contributing.

Your room = (sum of annual limits since the year you turned 18 or 2009, whichever is later) + (all prior-year withdrawals) − (all contributions made to date). Use the contribution room tab in this calculator, or log into CRA My Account for your CRA-verified figure. Note: CRA records update in April for the previous year, so they may lag your actual transactions.

A TFSA can hold cash, GICs, bonds, publicly traded stocks (including US and foreign stocks), ETFs, mutual funds, and segregated funds. You cannot hold shares of a private company you control. US stocks held in a TFSA are subject to US dividend withholding tax (15% under the Canada-US Tax Treaty) — unlike an RRSP, this withholding is not recovered.

No — only cash contributions and withdrawals affect your contribution room. If you contribute $50,000 and it grows to $120,000, your room used is $50,000. If you withdraw the full $120,000, the entire $120,000 is added back to your room the following January — one of the most powerful features of the TFSA.

The RRSP gives a tax deduction on contributions but taxes withdrawals. The TFSA has no deduction but all growth and withdrawals are tax-free forever. For most Canadians: use RRSP if your tax rate now is higher than you expect in retirement (high earners); use TFSA first if your rate is similar or lower now, or if you need withdrawal flexibility. The TFSA is better for managing income-tested government benefits (OAS, GIS) in retirement since TFSA withdrawals do not count as income.