TFSA · 2026

You can still contribute

$109,000

of your $109,000 cumulative room

19002026
Year when you turned 182009
$0
$0$109,000
$
$0

Include growth — withdrawing the full value restores that much room next year.

$0$200,000
$
$0
$0$0
$
$0
$0$0
$

Understanding your TFSA

What is a TFSA?

A Tax-Free Savings Account (TFSA) is a registered account introduced by the Canadian government in 2009. Any income earned within the account, including interest, dividends, and capital gains is completely tax-free, even when withdrawn.

Unlike an RRSP, contributions to a TFSA are not tax-deductible, but withdrawals are never taxed. This makes it one of the most flexible savings vehicles available to Canadian residents.

How Contribution Room Works

Contribution room accumulates every year starting from the year you turn 18 (or 2009, whichever is later), as long as you are a Canadian resident with a valid SIN.

Unused room carries forward indefinitely. If you withdraw money from your TFSA, that amount is added back to your contribution room at the beginning of the following calendar year.

Over-contributing results in a penalty tax of 1% per month on the excess amount.

Annual TFSA Contribution Limits

Annual TFSA contribution limits from 2009 to 2026
YearAnnual Limit
2009$5,000
2010$5,000
2011$5,000
2012$5,000
2013$5,500
2014$5,500
2015$10,000
2016$5,500
2017$5,500
2018$5,500
2019$6,000
2020$6,000
2021$6,000
2022$6,000
2023$6,500
2024$7,000
2025$7,000
2026$7,000
Total (2009–2026)$109,000

Key Rules to Remember

  • You must be 18 or older and a Canadian resident with a valid SIN to accumulate contribution room.
  • Unused contribution room carries forward to future years, it never expires.
  • Withdrawals are added back to your contribution room on January 1 of the next year.
  • Over-contributions are subject to a 1% per month penalty tax on the excess amount.
  • Transfers between your own TFSAs do not affect your contribution room.
  • The annual limit is indexed to inflation and rounded to the nearest $500.