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GrowThenDraw Updated for 2026

TFSA Calculator Canada — Room & Tax-Free Growth

Rebuild your 2026 contribution room from the official annual limits, test a planned deposit, and project the account balance without confusing investment growth with contribution room.

Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources

2026 contribution room

First year you were both 18+ and a Canadian resident; choose 2009 if eligibility began earlier.

Total deposits across every TFSA, not the current balance.

Ordinary withdrawals only; they have already returned as room.

Shown as room restored on 1 January 2027, not room available now.

Tax-free growth scenario

Market value is used only in the projection; it never changes room.

You are responsible for keeping future deposits inside personal room.

Editable scenario assumption, not a forecast.

Available 2026 room before planned deposit
$12,500
After the $4,000 planned contribution: $8,500 remains
Eligible dollar limits
$45,500
2026 contributions so far
$3,000
Room after planned deposit
$8,500
Restored 1 Jan 2027
$0

The planned contribution fits the reconstructed room. Compare this result with CRA My Account and your own 2026 transaction records before depositing.

Tax-free growth scenario
Balance in 20 years
$420,412
Future deposits
$140,000
Modelled growth
$230,412
Estimated fee drag
$15,969

$7,000 a year is modelled. Future TFSA dollar limits after 2026 are not yet known.

$210.2K$420.4KYear 1: TFSA balance $60,174, future deposits $7,000Year 2: TFSA balance $70,948, future deposits $14,000Year 3: TFSA balance $82,359, future deposits $21,000Year 4: TFSA balance $94,443, future deposits $28,000Year 5: TFSA balance $107,241, future deposits $35,000Year 6: TFSA balance $120,795, future deposits $42,000Year 7: TFSA balance $135,148, future deposits $49,000Year 8: TFSA balance $150,349, future deposits $56,000Year 9: TFSA balance $166,448, future deposits $63,000Year 10: TFSA balance $183,497, future deposits $70,000Year 11: TFSA balance $201,552, future deposits $77,000Year 12: TFSA balance $220,674, future deposits $84,000Year 13: TFSA balance $240,924, future deposits $91,000Year 14: TFSA balance $262,370, future deposits $98,000Year 15: TFSA balance $285,082, future deposits $105,000Year 16: TFSA balance $309,136, future deposits $112,000Year 17: TFSA balance $334,609, future deposits $119,000Year 18: TFSA balance $361,586, future deposits $126,000Year 19: TFSA balance $390,156, future deposits $133,000Year 20: TFSA balance $420,412, future deposits $140,000Y1Y5Y9Y13Y17Y20
Projected TFSA balance
YearDeposits that yearTotal future depositsModelled growthEnd balanceNo-fee balance
1$7,000$7,000$3,174$60,174$60,316
2$7,000$14,000$6,948$70,948$71,267
3$7,000$21,000$11,359$82,359$82,895
4$7,000$28,000$16,443$94,443$95,239
5$7,000$35,000$22,241$107,241$108,345
6$7,000$42,000$28,795$120,795$122,259
7$7,000$49,000$36,148$135,148$137,032
8$7,000$56,000$44,349$150,349$152,715
9$7,000$63,000$53,448$166,448$169,366
10$7,000$70,000$63,497$183,497$187,044
11$7,000$77,000$74,552$201,552$205,812
12$7,000$84,000$86,674$220,674$225,738
13$7,000$91,000$99,924$240,924$246,893
14$7,000$98,000$114,370$262,370$269,352
15$7,000$105,000$130,082$285,082$293,197
16$7,000$112,000$147,136$309,136$318,513
17$7,000$119,000$165,609$334,609$345,390
18$7,000$126,000$185,586$361,586$373,924
19$7,000$133,000$207,156$390,156$404,219
20$7,000$140,000$230,412$420,412$436,382
Read the rules behind the result

TFSA contribution room in 2026: limits, withdrawals and examples

Follow the $109,000 maximum calculation, a complete worked example, the next-year withdrawal rule and CRA's monthly excess-tax method.

Your TFSA balance is not your contribution room

A TFSA can hold cash, GICs, mutual funds, ETFs, bonds and other qualified investments. Its market value rises or falls with those holdings, but that change does not use or create contribution room. A $50,000 account can have $20,000 of room, no room, or an excess contribution — the balance alone cannot answer the question.

That is why this page runs two separate calculations. The first rebuilds 2026 room from eligibility, contributions and withdrawals. The second projects the investments already inside the TFSA plus future deposits. Neither number is allowed to silently change the other.

How the 2026 contribution-room calculation works

The calculator adds every official TFSA dollar limit from the first year you were both at least 18 and resident in Canada. It then adds ordinary withdrawals made through 31 December 2025 and subtracts all contributions through that date and all contributions already made in 2026 across every TFSA.

The maximum cumulative dollar limits are $109,000 for someone eligible in every year from 2009 through 2026. That is not a universal personal limit: years of non-residency, past contributions, withdrawals, transfers and special distributions can change the answer. Use 2009 as the first eligible year when you were already eligible before the TFSA began.

A 2026 withdrawal comes back as room in 2027

An ordinary withdrawal does not free room immediately. The amount is restored on 1 January of the next calendar year. Re-contributing the same money during 2026 can therefore cause an excess unless enough unused room already existed.

The calculator keeps 2026 withdrawals outside the current-room result and reports them as a separate 2027 restoration. This timing rule is one of the most common reasons a TFSA that appears comfortably below its old balance can still be over-contributed.

What the growth projection does — and does not do

Future deposits are added at the start of each month, annual fees are subtracted from the return assumption and the resulting nominal rate is divided by twelve. The no-fee comparison uses the same cash flows so the difference isolates modelled fee drag.

The projection assumes the monthly deposits are permitted by your personal room. It does not forecast TFSA dollar limits after 2026, verify financial-institution records, value investments in real time or guarantee a return. Test a conservative case as well as your central assumption.

Frequently asked questions

What is the TFSA contribution limit for 2026?

The annual TFSA dollar limit for 2026 is $7,000. Your personal available room may be higher because unused room carries forward and prior-year withdrawals return as room, or lower because of contributions and years when you were not eligible.

What is the maximum cumulative TFSA limit in 2026?

It is $109,000 for a Canadian resident who was at least 18 in every calendar year from 2009 through 2026 and has never contributed. It is not the correct maximum for someone who turned 18 later or became a Canadian resident later.

Do TFSA investment gains reduce contribution room?

No. Interest, dividends and capital gains earned inside the TFSA do not reduce room. Investment losses do not create room either. Contributions and eligible withdrawals drive the room calculation, not the account's market value.

Can I put a TFSA withdrawal back in during the same year?

Only if you already have enough unused contribution room. An ordinary withdrawal made in 2026 is added back on 1 January 2027, not on the withdrawal date.

What happens if I over-contribute to a TFSA?

The CRA generally charges 1% per month on the highest excess amount in each month until the excess is removed or new room absorbs it. The calculator shows a one-month illustration only because the actual tax depends on the timing and highest excess in every month.

Is a TFSA actually tax-free?

Contributions are not deductible, but eligible investment income and ordinary withdrawals are generally tax-free in Canada. Non-resident contributions, prohibited or non-qualified investments, advantages and professional-style trading can have separate tax consequences.

Why should I still check CRA My Account?

Financial institutions report TFSA activity after year-end, so the CRA figure can lag recent transactions. CRA tells holders to compare My Account with their own institution records before contributing. This calculator is a reconciliation aid, not access to your official account.

Rules verified 26 July 2026 against official CRA sources:

The 2026 annual dollar limit is $7,000. Excess tax is generally 1% per month on the highest excess in that month. Educational reconciliation and projection only, not financial, investment or tax advice.