Canadian TFSA Calculator
Project your tax-free savings growth, check your contribution room, and find out when your TFSA reaches your goals.
Your TFSA Details
How to use this calculator
- Enter your birth year — we'll estimate your available contribution room automatically.
- Enter total past contributions (not your balance — just what you've deposited over the years).
- Enter your current TFSA balance (your existing invested capital).
- Confirm or adjust your available contribution room.
- Optional: enter a one-time contribution today using your current room.
- Enter an annual contribution for Year 2 onward (new CRA room opens every January).
- Set your expected annual return and investment period, then click Calculate TFSA Growth.
Quick start with a preset:
Your Results
Fill in your details on the left and click Calculate TFSA Growth to see your projection.
Future TFSA Value
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Your Savings Milestones
| Year | Contribution | Growth | Balance | Room Remaining |
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Understanding Your TFSA
💰 What is a TFSA and How Does It Work?
The Tax-Free Savings Account is the most flexible registered account available to Canadians. Unlike an RRSP, contributions are not tax-deductible — but every dollar of growth, interest, and withdrawals inside a TFSA is completely tax-free, forever. You can hold virtually any investment inside a TFSA: savings accounts, GICs, stocks, ETFs, bonds, mutual funds, and even certain alternative investments. The TFSA was introduced in 2009 and is available to any Canadian resident aged 18 or older with a valid Social Insurance Number, regardless of income.
Contribution room accumulates every January 1 for every eligible Canadian — even if you've never opened a TFSA. If you were born in 1991 or earlier and have been a Canadian resident since 2009, your cumulative TFSA room as of January 1, 2026 is $109,000. If you've never contributed a dollar, you can deposit the full $109,000 today.
🔢 Worked Example: $500/Month in a TFSA Over 25 Years
A 30-year-old Ontario resident contributes $500/month to a TFSA invested in a low-cost all-equity ETF (XEQT or VEQT), assuming a 7% average annual return:
In a non-registered account at a 43% marginal rate, the same $291,000 in gains would generate roughly $62,000+ in capital gains tax upon withdrawal — money the TFSA investor keeps entirely. This is the core power of the TFSA: not just tax-deferred growth like an RRSP, but permanently tax-free growth.
💰 What is TFSA Contribution Room?
Your TFSA contribution room is the maximum amount you can deposit into all your TFSAs combined. It accumulates every year starting at age 18 (as long as you're a Canadian resident with a SIN), regardless of whether you actually have a TFSA open. If you were 18 or older in 2009, your lifetime contribution room in 2026 is $109,000.
📅 Annual TFSA Limits (2009–2026)
The CRA sets a new annual TFSA limit each year, indexed to inflation and rounded to the nearest $500. The limit has been $7,000 for 2024, 2025, and 2026. Unused room from previous years carries forward indefinitely — you never lose it, even if you've never opened a TFSA.
| Year | Annual Limit | Cumulative (from 2009) |
|---|---|---|
| 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 |
🔄 Withdrawals and Re-contributions
When you withdraw from your TFSA, that amount is added back to your contribution room — but not until January 1 of the following year. Re-contributing in the same calendar year without the available room will trigger a 1% per month penalty on the excess amount. This is the single most common TFSA mistake Canadians make: withdrawing and re-contributing in the same year thinking the room resets immediately. It does not.
Example: You withdraw $20,000 from your TFSA in March 2026. You cannot re-contribute that $20,000 until January 1, 2027. If you deposit it back in September 2026, the CRA will charge 1% per month on the $20,000 excess for every month it remains — $200/month — until you remove it.
⚠️ Over-Contribution Penalties
The CRA charges 1% per month on the highest excess TFSA amount for every month the excess remains. Because CRA My Account may not reflect current-year contributions until the following spring, always track your own contributions carefully and verify with your financial institution before making large deposits. Multiple TFSAs at different institutions are combined for room purposes — having two TFSAs does not give you double the contribution room.
🏦 TFSA vs RRSP: Which Should You Prioritize?
The TFSA and RRSP serve different purposes and the right choice depends on your current and expected future income. As a general guide: contribute to your RRSP when your marginal tax rate is high now and you expect it to be lower in retirement — the RRSP deduction saves you tax at your current high rate, and you pay tax at a lower rate on withdrawal. Choose the TFSA when your income is currently low (students, early career, parental leave years), when you may need the money before retirement, or when your income in retirement is expected to be similar to or higher than today.
Many Canadians should use both: maximize RRSP contributions in high-income years to get the deduction, then invest the tax refund in the TFSA. At lower income levels, fill the TFSA first and let the RRSP room accumulate for higher-earning years ahead.
📈 What Annual Return Should I Use?
The right return depends on how you invest. As a general guide:
Conservative — 4–5%
GICs, savings accounts, bond-heavy portfolios. Lower risk, lower growth.
Balanced — 6–7%
A mix of stocks and bonds. Common long-term estimate for a diversified portfolio.
Growth — 8–10%
All-equity index fund portfolios (e.g. XEQT, VEQT). Higher long-term growth potential with more short-term volatility.
❓ Frequently Asked Questions
Can I have more than one TFSA in Canada?
Yes — you can have as many TFSAs as you want at different financial institutions. However, your total contributions across all TFSAs combined cannot exceed your available contribution room. Having multiple TFSAs does not increase your room. Many Canadians hold a TFSA HISA at one institution for their emergency fund and a TFSA brokerage account at another for long-term investing.
Does TFSA affect GIS, OAS, or other benefits?
No — TFSA withdrawals do not count as income for any federal income-tested benefit or credit. This includes the Guaranteed Income Supplement (GIS), Old Age Security clawback, Canada Child Benefit, GST/HST credit, and provincial income-tested benefits. This makes the TFSA especially powerful for lower-income retirees who receive GIS — RRSP withdrawals would reduce GIS dollar-for-dollar, while TFSA withdrawals have no impact at all.
What happens to my TFSA when I die?
You can name your spouse or common-law partner as a "successor holder" — they inherit the TFSA and its full contribution room without affecting their own room. A non-spouse beneficiary receives the proceeds tax-free as of the date of death, but any growth after death is taxable. Always name a beneficiary or successor holder directly on the TFSA account — if you leave it through your estate via a will, the account loses its registered status and becomes part of your taxable estate.
Can non-residents contribute to a TFSA?
No — you cannot contribute to a TFSA while you are a non-resident of Canada. If you do, the CRA charges a 1% per month penalty on any non-resident contributions for every month they remain in the account. Room also does not accumulate during years of non-residency. If you leave Canada, stop contributing immediately. Existing TFSA assets can remain in the account without penalty, but new contributions are forbidden until you re-establish Canadian residency.
Are US stocks taxable inside a TFSA?
Capital gains and Canadian dividends inside a TFSA are fully tax-free. However, US dividends are subject to a 15% US withholding tax even inside a TFSA — unlike an RRSP, which is exempt from US withholding under the Canada-US tax treaty. For significant US dividend holdings, holding them in an RRSP rather than a TFSA avoids the 15% withholding. US capital gains inside a TFSA remain fully tax-free from a Canadian perspective.
What is the TFSA contribution limit for 2026?
The 2026 TFSA annual contribution limit is $7,000, the same as 2024 and 2025. The cumulative lifetime limit for someone who has been eligible since 2009 (born 1991 or earlier) is $109,000 as of January 1, 2026. Use our TFSA Room Calculator to find your exact available room based on your birth year, residency history, and contribution history.