See how your Tax-Free Savings Account grows over time — completely tax-free. Updated for 2026 CRA limits.
✅ Last verified: July 2026 — 2026 TFSA limit: CA$7,000 | Cumulative room: CA$95,000 | Source: CRA
⚡ QUICK ANSWER
The 2026 TFSA contribution limit is CA$7,000/year. If you have never contributed since 2009, your total cumulative room is CA$95,000. All growth — interest, dividends, capital gains — is 100% tax-free forever. Withdrawals are also tax-free and do not affect OAS or GIS. CA$7,000/year at 7% for 30 years = CA$694,000 tax-free.
🏦 TFSA Growth Calculator 2026
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📊 TFSA Growth Examples 2026 (CA$7,000/year at 7%)
Starting from zero. All growth completely tax-free. Source: CRA 2026.
Years
Total Contributed
TFSA Value
Tax-Free Gain
Growth Multiple
5 years
CA$35,000
CA$40,500
CA$5,500
1.2x
10 years
CA$70,000
CA$96,500
CA$26,500
1.4x
20 years
CA$140,000
CA$288,000
CA$148,000
2.1x
30 years
CA$210,000
CA$694,000
CA$484,000
3.3x
40 years
CA$280,000
CA$1,480,000
CA$1,200,000
5.3x
💡 TFSA Cumulative Contribution Room 2026
Year Turned 18
Total Room in 2026
2009 or earlier (18+ in 2009)
CA$95,000
2010
CA$90,000
2015
CA$60,000
2020
CA$40,000
2025 (turned 18 in 2025)
CA$14,000
* Assumes no previous contributions. Withdrawals add room back on January 1 of the following year. Check exact room at My CRA Account.
⚖️ TFSA vs RRSP — Quick Comparison 2026
Feature
TFSA
RRSP
2026 annual limit
CA$7,000
CA$32,490
Tax deduction on contribution
No
Yes ✅
Tax on withdrawals
None — ever ✅
Taxed as income
Affects OAS/GIS?
No ✅
Yes — withdrawals count
Withdraw anytime?
Yes — no penalty ✅
Age 71 limit + tax
Best for
Lower earners / flexibility
High earners (30%+ rate)
💡 TFSA Tips 2026
2026 TFSA Limit is CA$7,000
The annual TFSA contribution limit for 2026 is CA$7,000. If you have never contributed since 2009, your cumulative room is CA$95,000. Unused room carries forward — check your exact room at My CRA Account.
All Growth is Tax-Free — Forever
Unlike an RRSP, you never pay tax on TFSA withdrawals. Interest, dividends, and capital gains inside a TFSA are all tax-free — and TFSA withdrawals do not affect income-tested benefits like OAS or GIS in retirement.
Invest — Don't Just Save
Holding low-cost ETFs or index funds inside your TFSA instead of a savings account dramatically increases long-term returns. The tax-free compounding effect is most powerful with higher-returning investments held for decades.
Withdrawal Room Restores January 1
If you withdraw from your TFSA, that room is restored on January 1 of the following year — not immediately. Re-contributing in the same year without available room results in a 1%/month penalty tax.
TFSA FAQs 2026
What is the TFSA contribution limit for 2026?
The annual TFSA contribution limit for 2026 is CA$7,000. If you have never opened a TFSA and were 18 or older in 2009, your total cumulative room in 2026 is CA$95,000. Check your exact available room at My CRA Account.
What happens if I over-contribute to my TFSA?
Over-contributing to a TFSA results in a 1% per month penalty tax on the excess amount until it is withdrawn. This is a common mistake — always verify your available room before contributing, especially if you withdrew and re-contributed in the same year.
Can I withdraw from my TFSA anytime?
Yes. TFSA withdrawals can be made at any time, for any reason, with no tax. The amount withdrawn is added back to your contribution room on January 1 of the following year — not immediately. Re-contributing in the same calendar year without room triggers a penalty.
Should I invest or just save in my TFSA?
For long-term goals (10+ years), investing in low-cost index funds or ETFs inside your TFSA dramatically outperforms a savings account. The tax-free compounding effect is most powerful with higher-returning investments. For short-term goals (under 3 years), a high-interest TFSA savings account is safer.
Does TFSA income affect OAS or GIS in retirement?
No — this is one of the biggest advantages of the TFSA over the RRSP. TFSA withdrawals are not counted as income for the purposes of OAS clawback, GIS eligibility, or any other income-tested government benefit. This makes the TFSA especially valuable for retirees with modest income.
TFSA vs RRSP — which should I use first?
If you earn above CA$60,000, prioritise RRSP first — the tax deduction is worth more at a higher marginal rate. If you earn below CA$50,000, the TFSA is often better as withdrawals do not affect income-tested benefits. Always max employer pension match before either. Use our RRSP Calculator to compare both options.