Reviewed

A savings account where your money grows tax-free and you pay no tax when you take it out. The government sets a yearly limit on how much you can put in.

A savings account where your money grows tax-free and you pay no tax when you take it out. The government sets a yearly limit on how much you can put in.

General information only — not financial advice for your situation.

This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.

Technical definition

A registered account governed by ITA Section 146.2 that accepts after-tax contributions. All investment growth and withdrawals are completely tax-free. The 2026 annual contribution limit is $7,000, with cumulative room of $109,000 for individuals eligible since 2009. Withdrawn amounts restore as new contribution room on January 1 of the following year. Over-contributions are subject to a 1% per-month penalty tax.

Examples

  • • You contribute $7,000 to your TFSA in 2026. It grows to $8,200. You withdraw the full $8,200 tax-free, and on January 1, 2027 you regain $8,200 in contribution room.
  • • Someone who turned 18 in 2009 and never contributed has $109,000 of total TFSA room in 2026.

Keep exploring

contribution room tax free registered account TFSA room calculator RRSP refund estimator

About this site

Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.

Sources & references