TFSA Calculator
Project your Tax-Free Savings Account growth and see how much you save in taxes.
2026 limit: $7,000/year
Projected TFSA Value
$288,984.76
Total Contributions
$145,000.00
Tax-Free Growth
$143,984.76
Estimated Tax Saved
$35,996.19
vs. a taxable account at 25%
Growth Breakdown
TFSA Cumulative Contribution Room (2026)
If you were 18+ and a Canadian resident since 2009, your total lifetime TFSA contribution room is $109,000. Any unused room carries forward indefinitely.
TFSA: Canada’s Most Flexible Account
The Tax-Free Savings Account (TFSA), introduced in 2009, is one of the most versatile financial tools available to Canadian residents. Unlike an RRSP, contributions are made with after-tax dollars — you do not receive a deduction when you contribute. However, all investment income earned within the account (interest, dividends, and capital gains) grows completely tax-free, and withdrawals are also tax-free regardless of the amount or reason. This makes the TFSA ideal for both short-term savings goals and long-term wealth building.
Withdrawals are fully flexible: you can take money out at any time without penalty or tax consequences. The withdrawn amount is added back to your contribution room on January 1st of the following calendar year. This recontribution rule is critical to understand — if you withdraw $10,000 in June 2026, you cannot put that $10,000 back until January 1, 2027 (unless you have other unused room). Recontributing in the same year without available room triggers the 1% per-month over-contribution penalty.
TFSA Annual Contribution Limits (2009–2026)
| Year | Annual Limit | Cumulative Total |
|---|---|---|
| 2009–2012 | $5,000/yr | $20,000 |
| 2013–2014 | $5,500/yr | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016–2018 | $5,500/yr | $57,500 |
| 2019–2022 | $6,000/yr | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024–2026 | $7,000/yr | $109,000 |
The TFSA can hold the same qualifying investments as an RRSP: publicly traded stocks, ETFs, mutual funds, GICs, bonds, and more. Despite its name, a TFSA is not just a savings account — it is a registered investment account. Holding a diversified equity portfolio inside a TFSA allows all capital gains and dividends to compound entirely tax-free, which can result in dramatic long-term wealth accumulation. A common strategy is to use the TFSA for growth-oriented investments (where the tax savings on gains are largest) and the RRSP for fixed-income holdings.
One of the TFSA’s most underappreciated advantages is that withdrawals do not count as income for the purposes of any federal income-tested benefit. This means TFSA withdrawals will not claw back your Old Age Security (OAS), Guaranteed Income Supplement (GIS), Canada Child Benefit (CCB), or GST/HST credit. For retirees in particular, this makes the TFSA a superior source of supplemental retirement income compared to an RRSP or RRIF, where every dollar withdrawn is added to taxable income.
Frequently Asked Questions
What is the 2026 TFSA contribution limit?
What makes the TFSA unique?
Can I withdraw from my TFSA anytime?
What happens if I over-contribute to my TFSA?
Can I hold stocks in my TFSA?
Do TFSA withdrawals affect government benefits?
What is the recontribution rule?
Can non-residents contribute to a TFSA?
Official Data Sources
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Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.