Canada TFSA Calculator 2026 β C$7,000 Annual Limit, C$102,000 Cumulative
Calculate your 2026 TFSA contribution room, unused room, projected tax-free balance at 65 and tax savings vs a taxable account. Compare TFSA vs RRSP strategy.
Must be 18+ to contribute to TFSA
TFSA started in 2009; if you turned 18 before 2009, enter 2009
C$
Total current market value of all your TFSAs C$
Max C$7,000/year for 2026 Diversified portfolio: 5β7% is reasonable
Combined federal + provincial rate. Used to calculate tax savings.
Common ages:
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Total Lifetime TFSA Room
C$0
Unused Room Available
C$0
Projected Balance at 65
C$0
Est. Tax Savings vs Taxable
0
Years to Age 65
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Total Future Contributions
TFSA Room Calculation
How the TFSA Works
The Tax-Free Savings Account (TFSA) was introduced in 2009. Every Canadian resident 18+ earns C$7,000 of new contribution room each year (2026 rate). Unused room accumulates. Withdrawals are tax-free and restore contribution room the following calendar year.
Cumulative TFSA Room by Year Turned 18
If turned 18 in 2009 or earlier: C$102,000 (cumulative 2009β2026)
If turned 18 in 2015: C$102,000 β (2009β2014 years) = C$61,000 approx
If turned 18 in 2020: 2020β2026 = 7 years Γ avg ~$6,500 = C$47,000
Annual limits: 2009β2012 $5K, 2013β2014 $5.5K, 2015 $10K, 2016β2018 $5.5K, 2019β2022 $6K, 2023β2024 $6.5K, 2025β2026 $7K
If turned 18 in 2015: C$102,000 β (2009β2014 years) = C$61,000 approx
If turned 18 in 2020: 2020β2026 = 7 years Γ avg ~$6,500 = C$47,000
Annual limits: 2009β2012 $5K, 2013β2014 $5.5K, 2015 $10K, 2016β2018 $5.5K, 2019β2022 $6K, 2023β2024 $6.5K, 2025β2026 $7K
Example
Maria, age 35, turned 18 in 2009, balance C$25,000, contributes C$7,000/year at 6% return:
Total room (2009β2026): C$102,000
Contributions used (assuming max contributions to current balance): C$25,000 used
Unused room: C$77,000
Years to 65: 30 years
Projected balance at 65: approx C$25,000 Γ (1.06)^30 + C$7,000 Γ [(1.06^30 β 1)/0.06] β C$699,000
Tax savings (33% rate, 30 years growth): approx C$200,000+
Total room (2009β2026): C$102,000
Contributions used (assuming max contributions to current balance): C$25,000 used
Unused room: C$77,000
Years to 65: 30 years
Projected balance at 65: approx C$25,000 Γ (1.06)^30 + C$7,000 Γ [(1.06^30 β 1)/0.06] β C$699,000
Tax savings (33% rate, 30 years growth): approx C$200,000+
Annual TFSA Contribution Limits History
2009β2012: C$5,000 | 2013β2014: C$5,500 | 2015: C$10,000 | 2016β2018: C$5,500 | 2019β2022: C$6,000 | 2023β2024: C$6,500 | 2025β2026: C$7,000
Extended
TFSA vs RRSP Comparison
See which account delivers better after-tax retirement income at your income level and tax rates
Same C$7,000 contributed to TFSA vs RRSP at your marginal tax rate, projected to age 65, then withdrawn. RRSP shown at different retirement tax rates.
| Account | Annual Contribution | Tax Refund Now | Projected Balance at 65 | Tax at Withdrawal | Net After-Tax at 65 |
|---|
RRSP assumes full contribution deducted at your current marginal rate. Withdrawal rates modeled at 20%, 33% and your current rate.
TFSA balance projection at 5-year intervals based on your current inputs.
| Age | Year | Annual Contribution | Balance (TFSA) | Balance (Taxable at same rate) | TFSA Advantage |
|---|
Frequently Asked Questions
How much TFSA contribution room do I have in 2026?
The annual TFSA contribution limit for 2026 is C$7,000. Total cumulative room since 2009 (assuming you were 18 or older in 2009 and a Canadian resident) is C$102,000 as of 2026. If you turned 18 after 2009, your room accumulates only from the year you turned 18. Unused contribution room carries forward indefinitely. Withdrawals restore your contribution room β but only in the following calendar year, not the same year.
Is there tax on TFSA growth and withdrawals?
No. The TFSA is completely tax-free at every stage: contributions are made with after-tax dollars (no deduction), but all investment growth β interest, dividends, and capital gains β is tax-free inside the account. Withdrawals are 100% tax-free and do not affect government benefits like OAS, GIS, or income-tested tax credits. This makes the TFSA ideal for retirement savings, emergency funds, or any medium to long-term savings goal.
What is the difference between TFSA and RRSP?
RRSP contributions reduce your taxable income now (you get a tax refund), but withdrawals are taxed as income. TFSA contributions provide no immediate tax deduction, but withdrawals are completely tax-free. RRSP is generally better when your tax rate at contribution is higher than your rate at withdrawal (i.e., you earn more now than in retirement). TFSA is better when rates are equal, or if you expect high retirement income. Many Canadians benefit from using both strategically.
What happens if I over-contribute to a TFSA?
Over-contributing to your TFSA results in a penalty tax of 1% per month on the excess amount until it is withdrawn. For example, if you over-contribute C$5,000, you owe C$50 per month until you remove the excess. The CRA tracks TFSA room and will send a notice if you over-contribute. It's important to track your room carefully, especially if you withdrew in a previous year β that room is not restored until January 1 of the following year.
Can I invest in stocks and ETFs inside a TFSA?
Yes. A TFSA is simply a tax shelter that can hold a wide range of investments: cash, GICs, bonds, mutual funds, ETFs, and stocks listed on eligible exchanges. You can actively trade stocks within a TFSA without triggering capital gains tax. However, if the CRA determines you are carrying on a business of trading (too active, too frequent), it may treat gains as business income and tax them. Dividend income from US stocks in a TFSA is subject to 15% US withholding tax β for US-listed investments, RRSPs are preferred over TFSAs.