TFSA Contribution Limits 2026: Room, Withdrawals, and Re-Contribution
The tax-free savings account is the most flexible account in Canada: you can put money in, take it out, and put it back, and nothing is ever taxed. But the flexibility has a limit, and the limit is a number — $7,000 for 2026, and $109,000 in total if you have been eligible since the account began in 2009. Put in more than your room and you pay 1% a month on the excess, with no buffer at all.
In short
You can contribute $7,000 to a TFSA in 2026. If you were 18 or older and resident in Canada every year since 2009 and never contributed, your total room is $109,000. Withdrawals are tax-free, and the amount you take out is added back to your room on 1 January of the following year — not straight away.
The annual limit
The TFSA annual limit for 2026 is $7,000 — the same as in 2024 and 2025. The limit is indexed to inflation and rounded to the nearest $500, so it only moves when inflation has pushed it across a $500 step. The CRA has not announced any change for 2027, so the site states the 2026 limit and the rule, not a guess about next year.
The $109,000 total
TFSA room has accumulated every year since 2009. If you were 18 or older and a Canadian resident every year since 2009 and you never contributed, your total room is $109,000. Some older sources still quote a lower cumulative total — that figure is out of date and should not be used. The $109,000 figure is confirmed by RBC Direct Investing (3 November 2026) and the majority of 2026 guides citing the CRA. If you became a resident or turned 18 later, your total is smaller: you only accumulate room from the year you turn 18 or become resident.
Who can open a TFSA
You need to be 18 or older, hold a valid Social Insurance Number, and be a Canadian resident. Room starts accruing in the year you turn 18 — or the year you become a resident — even if you do not open an account. That is why someone who opens their first TFSA at 30 can often contribute far more than $7,000 in the first year: all the room from their eligible years is waiting.
Withdrawals and re-contribution
Withdrawals from a TFSA are tax-free, and they do not affect income-tested benefits such as Old Age Security or the Guaranteed Income Supplement. But the room does not come back immediately. If you withdraw $5,000 in 2026, that $5,000 is added to your room on 1 January 2027 — plus the 2027 annual limit. Put the money back in the same year and you have over-contributed, which is the most common TFSA mistake there is.
Over-contributing
There is no $2,000 buffer for TFSAs, unlike RRSPs. Any excess is taxed at 1% per month on the highest excess amount, and you report it on form RC243. The tax keeps running until the excess is withdrawn or new room absorbs it. The over-contributions guide explains how to fix it.
Finding your room
Your TFSA room is shown in CRA My Account, under RRSP and TFSA information. The CRA's figure can lag behind your actual contributions and withdrawals, because institutions report to the CRA on their own schedule — so keep your own record as well, and do not treat the CRA figure as permission to contribute without checking your own numbers.
Related guides
Sources: Canada Revenue Agency, TFSA.