No TFSA Contribution Increase for 2026

For 2026, the new Tax-Free Savings Account (TFSA) contribution room is $7,000, the same as for 2025. This amount is added to your existing unused room and any withdrawals from the previous year, potentially bringing the total for someone eligible since 2009 to $109,000.

To find your personal limit, you can use the Canada Revenue Agency (CRA) website worksheet or online calculator.

Nevertheless, we recommend you keep track of your own contributions and withdrawals for accuracy to avoid penalties. 

Here's a brief summary of how TFSA Contribution Room Works:

• Annual Limit: The base limit is set by the government and adjusted for inflation, resulting in $7,000 for 2026.

• Unused Room: Any contribution room you didn't use in prior years carries forward.

• Withdrawals: The amount you withdraw from your TFSA is added back to your contribution room on January 1st of the following year. 

Because you can add back with withdrawals, you never lose your contribution room, which is the case for an RRSP.

Example: Maximum Cumulative Room

• If you were 18 or older in 2009 and have never contributed, your total room before 2026 was $102,000, making your total room $109,000 (102,000 + 7,000) as of January 1, 2026.

Your available TFSA room is the sum of the new annual limit, your past unused room, and any withdrawals from the prior year.

The CRA My Account is a resource, but keeping your own records is crucial for preventing over-contributions and penalties.