About the TFSA Calculator (Canada)
This TFSA calculator does two jobs. First, it estimates your Tax-Free Savings Account contribution room for 2026 based on the year you turned 18, when you became a Canadian resident, how much you have contributed and what you withdrew in earlier years. Second, it projects how your TFSA could grow tax-free and how much tax you avoid compared with holding the same investments in a taxable account.
TFSA room accumulates every year from 2009 (or the year you turn 18 and are resident in Canada, if later), whether or not you open an account. The annual limit is $7,000 for 2024, 2025 and 2026, bringing total cumulative room since 2009 to $109,000 for someone who has been eligible every year. Withdrawals are added back to your room on 1 January of the following year. These are the CRA figures for 2026; the indexed 2027 limit had not been published when this page was updated, so any later year is assumed to stay at $7,000.
Your official room is shown in CRA My Account; use this calculator to understand the number and to plan. Contributions over your limit are taxed at 1% per month on the highest excess amount, so double-check before topping up. The tax comparison assumes returns in a taxable account are taxed every year at your marginal rate, which overstates the drag for capital gains and eligible dividends.
With the default inputs, the 2026 tfsa contribution room is $54,000.00. Change any value above to recalculate instantly.
How to use the tfsa calculator (canada)
- 1Enter your year of birth and the year you became a Canadian resident.
- 2Enter the total you have ever contributed, including 2026 contributions.
- 3Enter withdrawals made before 2026 (they are added back to your room).
- 4Check the estimated room against CRA My Account before contributing.
- 5Enter your balance, planned contributions and expected return to project tax-free growth.
Formula and method
Your contribution room is the sum of the TFSA dollar limits for every year from the later of 2009, the year you turned 18, and the year you became a resident, up to 2026. From that total the calculator subtracts every contribution you have made (including this year’s) and adds back withdrawals made in earlier calendar years, because CRA restores withdrawn amounts on 1 January of the next year. Qualifying transfers between your own TFSAs are not counted as contributions or withdrawals.
The growth projection adds your yearly contribution at the start of each year and compounds at the expected return. The taxable comparison grows at the return × (1 − marginal tax rate), which models income taxed every year as interest; real results depend on how your investments are taxed.
- Room
- Unused TFSA contribution room for 2026
- r
- Expected annual return
- t
- Marginal tax rate used in the taxable comparison
Worked examples
Born 1985, resident since 2009
Eligible since 2009, the cumulative limit is $109,000. After $60,000 of contributions and $5,000 of past withdrawals added back, room is $54,000. Growing $75,000 plus $7,000 a year at 6% for 20 years reaches about $513,484, roughly $120,948 more than a taxable account at a 30% tax rate.
Turned 18 in 2023
Room starts in 2023, the year of turning 18: $6,500 + $7,000 + $7,000 + $7,000 = $27,500 by 2026, all unused.
Newcomer resident since 2020
Room only accrues from the year of residency: 2020–2022 at $6,000, 2023 at $6,500 and 2024–2026 at $7,000 make $45,500. After $20,000 of contributions, $25,500 remains.
Frequently asked questions
What is the TFSA limit for 2026?+
The annual TFSA dollar limit for 2026 is $7,000, the same as 2024 and 2025. Someone who has been 18 or older and resident in Canada since 2009 has cumulative room of $109,000 in 2026 if they have never contributed.
When do TFSA withdrawals get added back?+
Withdrawals are added back to your contribution room on 1 January of the following year, not immediately. Re-contributing the same amount in the same year can create an over-contribution if you have no other room.
What happens if I over-contribute to my TFSA?+
CRA charges a tax of 1% per month on the highest excess amount in each month for as long as it stays in the account. Withdraw the excess as soon as you notice, and check your room in CRA My Account.
Is TFSA income taxable?+
No. Interest, dividends and capital gains earned inside a TFSA, and withdrawals, are not taxed in Canada and do not affect income-tested benefits. US dividends may still have 15% US withholding tax that cannot be recovered.
TFSA or RRSP — which is better?+
An RRSP gives a deduction now and is taxed on withdrawal, so it usually wins if your tax rate in retirement will be lower than today. A TFSA is often better at lower incomes, for flexibility, or when you expect a similar or higher future tax rate.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.
Sources
- Canada Revenue Agency — Tax-Free Savings Account (TFSA)
- Canada Revenue Agency — Calculate your TFSA contribution room (2026 limit $7,000)
- Canada Revenue Agency — MP, DB, RRSP, DPSP, ALDA, TFSA limits (TFSA dollar limit by year)
- Canada Revenue Agency — Examples: tax payable on excess TFSA amount (1% per month)