TFSA Calculator

The 2026 TFSA annual limit is $7,000, the same as 2025. If you have been eligible since 2009 and have never contributed, your total lifetime room is $102,000. Unused room from previous years carries forward automatically — check My CRA Account for your exact personal room.

TFSA contributions use after-tax dollars, but all growth and withdrawals are completely tax-free. RRSP contributions give you a tax deduction now, but withdrawals are fully taxed as income. The best strategy for most Canadians is to use both: RRSP when you're in a high tax bracket, TFSA for flexibility.

Yes — TFSA withdrawals are completely tax-free and penalty-free at any time for any reason. The amount you withdraw is added back to your contribution room on January 1 of the following year. Do not re-contribute in the same calendar year you withdraw, or you may over-contribute.

Over-contributions are taxed at 1% per month on the excess amount until it is removed. This is one of the most common TFSA mistakes — it usually happens when people re-contribute a withdrawal in the same calendar year. Always verify your room at My CRA Account before contributing.

Use RRSP if your marginal tax rate is high now (e.g. 30%+) and you expect to be in a lower bracket in retirement. Use TFSA if your income is lower now, you're in a low bracket, or you need flexibility — TFSA withdrawals don't affect OAS, GIS, child benefits, or other income-tested programs.