Reference · Legal limits
Canada’s 2026 TFSA limit and how to calculate available room
The Canada Revenue Agency added CAD 7,000 to eligible TFSA contribution room for 2026. Unused room, prior withdrawals and current-year deposits affect what is available.
Sources checked
Calculated examples apply the same CRA formula to different account histories.
Start with the current annual dollar limit
The CRA states a CAD 7,000 annual limit for 2026, added on 1 January. The available amount can be different. The formula adds unused room from previous years and withdrawals made in the previous year, then deducts contributions already made this year. Source 1
A withdrawal comes back as room the following year
A CAD 2,000 withdrawal made in 2025 can add CAD 2,000 of room on 1 January 2026. A withdrawal made in 2026 generally comes back on 1 January 2027. For the last example in the table, a 2026 withdrawal does not increase the CAD 3,000 remaining after a CAD 4,000 contribution against a CAD 7,000 starting amount. Source 1
The room is shared across accounts
Holding more than one TFSA does not multiply the allowance. The CRA says to use records for every account. A contribution uses room immediately, including where it has not appeared in the CRA account. The agency notes that financial institutions report the previous year’s transactions on a later schedule. Source 1
Check the formula before adding money
The CRA says contributions above the available room are subject to excess-contribution tax. It identifies qualifying transfers, exempt contributions and specified distributions as having no effect on room. The examples use the ordinary contribution calculation and assume no special transactions. Source 1