Growth and withdrawals
Interest, dividends and capital gains earned in a TFSA are generally tax-free. Eligible withdrawals are also tax-free.
TFSA essentials for Canadian retirees
Know the account.
Protect your room.
A TFSA can hold savings and investments that generate generally tax-free interest, dividends and capital gains. Contributions are not tax-deductible, but eligible withdrawals are tax-free.
18+
Canadian tax resident with a valid SIN
$7,000
2026 annual TFSA dollar limit
Next year
when withdrawals are added back as room
Four rules worth remembering
The account is flexible. The room is precise.
One room total
Your contribution room is shared across every TFSA you own. Opening another account does not create more room.
Withdraw, then wait
A withdrawal is added back to your available room on January 1 of the next calendar year—not immediately.
Retirement benefits
TFSA income and withdrawals do not affect federal income-tested benefits such as OAS and GIS.
A quick starting estimate
How much annual-limit room could have accumulated?
This one-step tool totals the Government of Canada’s annual TFSA dollar limits beginning with your Canadian tax-residency year.
If this was the same year you became a permanent resident, use that year. Otherwise, use your tax-residency year.
Potential cumulative annual limits through 2026—
Choose a year to see an estimate.
This is not your available contribution room.
The estimate assumes you were at least 18 and remained a Canadian tax resident every year shown. Actual room must account for all TFSA contributions, prior-year withdrawals, and any non-resident years.
Annual limits
From 2009 to 2026.
The TFSA began in 2009. New residents start accumulating room in the year their Canadian tax residency begins, provided they are at least 18.
YearsAnnual limit
2009–2012$5,000
2013–2014$5,500
2015$10,000
2016–2018$5,500
2019–2022$6,000
2023$6,500
2024–2026$7,000
Before contributing
Use records, not a rough estimate.
CRA says the most reliable calculation uses your own records from every TFSA issuer. CRA account information is updated only once each spring with the previous year’s transactions.
Over-contributions are generally taxed at 1% per month. Do not contribute while you are a non-resident of Canada for income-tax purposes.
Use CRA’s room calculatorOfficial sources
Continue with the CRA.
Rules and annual limits checked against CRA pages modified February 20, 2026. This page is educational and does not replace CRA records or professional tax advice.