Tax-Free Savings Account: what the TFSA contribution room means
The TFSA annual limit is $7,000 for 2026. Unused contribution room carries forward, and any amount withdrawn is restored as new room on January 1 of the following year.
On this page
- 2026 annual TFSA limit
- $7,000 for 2026, the same as 2024 and 2025. The limit is set every January 1 and applies to the calendar year.CRA, TFSA dollar limits table
- Unused room
- Unused contribution room carries forward to later years.CRA, TFSA contribution room
- Withdrawal restored
- Any amount withdrawn in the current year is added back as contribution room on January 1 of the following year.CRA, How withdrawals affect contribution room
- Room start age
- For Canadian residents, contribution room begins accumulating in the calendar year the holder turns 18.CRA, TFSA contribution room
The annual dollar limit is the same for every TFSA holder
The TFSA is a registered account that shelters savings and investment earnings from Canadian income tax. The annual contribution limit is set by the Government of Canada each January 1, and the same limit applies to every eligible TFSA holder. For 2026 the limit is $7,000, unchanged from 2024 and 2025. CRA, TFSA contribution room (opens in a new tab)
The dollar limit is indexed to inflation and rounded to the nearest $500. The history is: $5,000 from 2009 to 2012, $5,500 in 2013 and 2014, $10,000 in 2015, $5,500 from 2016 to 2018, $6,000 from 2019 to 2022, $6,500 in 2023, and $7,000 from 2024. CRA, TFSA dollar limits table (opens in a new tab).
Unused room carries forward; a withdrawal restores room the next year
Unused TFSA contribution room carries forward. For a year, available room is that year's annual dollar limit plus unused room from prior years and withdrawals restored on January 1, minus contributions made during that year. Annual dollar limits accumulate only for years of Canadian residency from age 18. CRA, TFSA contribution room (opens in a new tab).
A withdrawal restores room in a different way. Any amount withdrawn during the current calendar year is added back as new contribution room on January 1 of the following year. The restored amount is added on top of the annual limit for that year. CRA, How withdrawals affect contribution room (opens in a new tab)
Over-contributing to a TFSA attracts a 1% penalty per month on the excess amount. This is a tax imposed under the Income Tax Act and assessed by the CRA. CRA, TFSA contribution room (opens in a new tab)
Room starts at 18 and applies to all TFSAs together
For Canadian residents, TFSA contribution room begins accumulating in the calendar year the holder turns 18. New residents aged 18 or older start accumulating room when residency begins. CRA, TFSA contribution room (opens in a new tab).
A TFSA holder can have more than one TFSA, and the contribution room is the total across all of them. The $7,000 annual dollar limit for 2026 is shared across all accounts; it is not a separate allowance for each TFSA. Available room can also include unused room and restored withdrawals. CRA, TFSA contribution room (opens in a new tab).
The CRA describes financial institution records as a way to verify the contribution room shown in a CRA account. CRA, TFSA contribution room (opens in a new tab).
This page is an original explanation of CRA material and does not imply CRA endorsement.