What is the TFSA contribution limit for 2026?

The TFSA contribution limit for 2026 is $7,000. Someone who has been eligible every year since the TFSA started in 2009 and has never contributed has $109,000 of cumulative room as of January 1, 2026.

Can I withdraw from my TFSA at any time?

Yes. A TFSA withdrawal can be any amount, at any time, for any reason, and it is not taxed. A withdrawal is added back to your TFSA contribution room on January 1 of the following year, not right away, so putting it back sooner uses other unused room.

What happens if I over-contribute to my TFSA?

An over-contribution is taxed at 1% of the highest excess amount in each month, for every month the excess stays in the account, with no buffer.

Does a TFSA affect GIS or other government benefits?

No. TFSA income and withdrawals are not included in income, so they do not reduce income-tested benefits such as the Guaranteed Income Supplement, the Old Age Security recovery tax (clawback), the Canada Child Benefit or the Canada Groceries and Essentials Benefit (formerly the GST/HST credit).

TFSA Guides and Calculators for Canadians (2026)

The Tax-Free Savings Account (TFSA) lets Canadian residents 18 and older invest without paying tax on the growth or the withdrawals. The complete TFSA guide explains how the account works from start to finish; the pages below each answer one question in depth.

Start here

Complete TFSA guide: how the account works, what it can hold, and how it fits with other accounts
Opening your first TFSA: who can open one, what you need, and what to put in it
Best TFSA accounts in Canada: savings, GIC, brokerage and robo-advisor TFSAs compared
Holding a GIC in a TFSA

Contribution room and limits

How much TFSA room do I have?: room by birth year and how to check it in CRA My Account
TFSA contribution limit and history
TFSA contribution room calculator
When TFSA room resets
Having more than one TFSA
Funding a spouse’s TFSA
What to do once your TFSA is maxed out

Over-contributions

TFSA over-contribution penalty calculator and how to fix an excess

Withdrawals and transfers

Strategy and comparisons

Estate planning

Browse All TFSA Guides and Calculators for Canadians (2026) Articles

Browse all 23 articles in this section.

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Best TFSA Accounts Canada 2026 | Compare Options

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US Dividend Withholding Tax in a TFSA: What the 15% Costs Canadians

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Sources

The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and September 29, 2026. How we check facts.

Canada Revenue Agency: Mp rrsp dpsp tfsa limits ympe
Canada Revenue Agency: Chart prescribed factors
Canada Revenue Agency: What home buyers plan
Canada Revenue Agency: Participate home buyers plan
Canada Revenue Agency: Home buyers plan lifelong learning plan withdrawals
Canada Revenue Agency: Participate
Canada Revenue Agency: Repayments your rrsp under
Canada Revenue Agency: Rrsps other registered plans retirement
Canada Revenue Agency: Tax rates on withdrawals
Canada Revenue Agency: Excess
Canada Revenue Agency: Document
Canada Revenue Agency: Non permitted investment

8 more sources

Canada Revenue Agency: Non resident
Canada Revenue Agency: Death rrsp annuitant a prpp member
Canada Revenue Agency: Transfer
Canada Revenue Agency: Withdraw
Government of Canada: PDF document
Internet Archive: Payments From an RRSP, a VRSP, a PRPP or a RRIF
Justice Laws (Canada): Income Tax Act
OSFI: Life Income Funds, Restricted Life Income Funds, and Variable Benefits Accounts