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2026 annual limit
$7,000
This is the new TFSA dollar limit added for 2026 if you are eligible.
2026 TFSA Guide
Save tax. Grow wealth. Invest smarter.
A Tax-Free Savings Account is more than a savings account. It can hold eligible investments and help your money grow without Canadian tax on qualified interest, dividends and capital gains.
TFSA Essentials
The important numbers and rules at a glance
Simple facts to help you understand how contribution room, growth and withdrawals work.
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Maximum cumulative limits
$109,000
This applies only to someone who was eligible every year since TFSA began in 2009 and has never contributed.
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Unused room carries forward
No expiry
Unused contribution room can continue accumulating for future years while you remain eligible.
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Multiple accounts are allowed
1 total limit
You may have more than one TFSA, but all contributions share the same personal contribution room.
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Withdrawal room returns later
Next year
An amount withdrawn is normally added back to available room on January 1 of the following calendar year.
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Overcontribution penalty
1% / month
Excess TFSA amounts may be taxed monthly while they remain in the account.
Tax-Free Growth
Your money can do more than sit in cash.
A TFSA can hold eligible investments selected for your goals, time horizon and risk tolerance.
- Interest may grow tax-free inside the account.
- Eligible dividends may grow tax-free.
- Eligible capital gains may grow tax-free.
- Withdrawals are generally not included as taxable income.
- TFSA withdrawals generally do not affect federal income-tested benefits and credits.
Not Just Savings
What can you hold inside a TFSA?
The available choices depend on the financial institution and product provider.
ETF
Market investments
Eligible stocks, exchange-traded funds and mutual funds may be held in a TFSA.
GIC
Deposits and GICs
Cash savings and eligible guaranteed investment certificates can be used for lower-risk goals.
SF
Segregated funds
Eligible segregated fund contracts may provide investment exposure with insurance-contract features.
Plan Correctly
TFSA versus a regular savings account
TFSA
- Qualified investment growth is generally tax-free.
- Can hold several eligible investment types.
- Annual and unused contribution room apply.
- Withdrawn amounts normally return as room the next calendar year.
Regular savings account
- Interest earned is generally taxable.
- Usually designed mainly for cash deposits.
- No TFSA contribution-room rules.
- Withdrawals do not create registered-account room.
Biggest mistake: withdrawing and recontributing too soon
A withdrawal does not immediately restore your TFSA contribution room. Do not recontribute the withdrawn amount in the same calendar year unless you already have enough unused room. Otherwise, you may create an overcontribution.
Frequently Asked Questions
Common TFSA questions
Can I have multiple TFSA accounts?
Yes. However, your contribution room is shared across all of your TFSAs, not multiplied by the number of accounts.
Is the maximum always $109,000?
No. That cumulative amount applies only to someone eligible every year since 2009. New residents and younger Canadians generally have less room.
Can I withdraw money at any time?
Depending on the investment held, withdrawals are generally possible, but fees, market value changes or product restrictions may apply.
When do I get withdrawn room back?
The withdrawn amount is normally added back to your available contribution room on January 1 of the next calendar year.
Should I name a beneficiary or successor holder?
Estate and beneficiary choices depend on your province, relationship and personal situation. A spouse or common-law partner may potentially be named successor holder where permitted.
How should I confirm my room?
Review your own contribution and withdrawal records and compare them with CRA information before contributing. CRA records may not immediately reflect recent activity.
Learn with Lava
Book Free Consultation
Not sure how to use your TFSA effectively?
Review your goals, available room, investment timeline and risk tolerance in a focused complimentary consultation.