2026 TFSA Contribution Limit Announced: CRA Confirms $7,000 Limit
The Canada Revenue Agency (CRA) has officially announced the Tax-Free Savings Account (TFSA) contribution limit for 2026. The new limit remains $7,000, matching the limits set for both 2024 and 2025.
If you’ve been eligible since the TFSA’s launch in 2009, your total contribution room by 2026 will reach $103,500.
What is a TFSA?
The Tax-Free Savings Account (TFSA) may sound like a simple savings account, but it’s actually one of the most flexible tax-advantaged investment accounts available to Canadians. Introduced by the CRA in 2009, a TFSA lets you earn tax-free growth on the money you contribute – whether through interest, dividends or capital gains!
Unlike a regular savings account, which only earns bank interest, a TFSA allows you to invest in a wide range of financial products such as stocks, exchange traded funds, index funds, bonds, guaranteed investment certificates and even cash savings. Any income you earn inside your TFSA stays completely tax-free – even when you withdraw it.
TFSA Contribution Limits (2009–2026): Updated for 2026
The amount of money that you can contribute to your TFSA is limited each year and there is a specific contribution limit from 2009 onward, as TFSAs were first introduced in 2009 by the Canadian government.
With this TFSA contribution limit announcement, the total contribution room available in 2026 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $103,500.
Here is the contribution limit for each year since the TFSA was introduced:
| 2009 | $5,000 |
| 2010 | $5,000 |
| 2011 | $5,000 |
| 2012 | $5,000 |
| 2013 | $5,500 |
| 2014 | $5,500 |
| 2015 | $10,000 |
| 2016 | $5,500 |
| 2017 | $5,500 |
| 2018 | $5,500 |
| 2019 | $6,000 |
| 2020 | $6,000 |
| 2021 | $6,000 |
| 2022 | $6,000 |
| 2023 | $6,500 |
| 2024 | $7,000 |
| 2025 | $7,000 |
| 2026 | $7,000 |
Your TFSA contribution room starts accumulating the year you turn 18 (or the year the TFSA was introduced, whichever is later). For example, if you turned 18 in 2015, your total available TFSA contribution room by 2026 would be approximately $71,500 (assuming you were eligible since 2015 and have never made a contribution).
If you accidentally over-contribute to your TFSA, the Canada Revenue Agency (CRA) will charge a 1% monthly penalty on the excess amount until it’s withdrawn. While 1% may not sound like much, it compounds quickly and can significantly reduce your tax-free growth. To avoid this, keep track of your available TFSA room regularly by logging into your CRA My Account or checking your latest Notice of Assessment.
Benefits of a TFSA
The biggest advantage of a Tax-Free Savings Account is that all earnings are tax-free (including interest, dividends and capital gains). Unlike an RRSP, TFSA contributions are not tax-deductible, but any money you withdraw (including growth) is completely tax-free. This flexibility makes the TFSA an excellent tool for both short-term savings and long-term investing.
Some of the key benefits of the TFSA include:
- Tax-free growth: All investment gains remain untaxed, even upon withdrawal.
- Withdraw anytime: You can take money out for any reason, without penalties.
- Contribution room replenishes: Any amount you withdraw is added back to your TFSA limit the following year.
- Wide investment choices: Hold stocks, ETFs, mutual funds, GICs, bonds and cash.
To learn more, explore our detailed guide on Understanding TFSAs, or if you already invest through a TFSA, check out TFSA Investment Options and Strategies to help you make the most of your tax-free growth potential.
