TFSA contribution limit 2026 and 2027: $7,000 for 2026, and when the 2027 limit is announced

What is the TFSA contribution limit for 2027?

The TFSA contribution limit for 2027 is not yet announced. As of October 2026 the CRA's limits page shows the Tax-Free Savings Account (TFSA) dollar limit only up to 2026. The new figure is normally confirmed in November, once the inflation figure used for indexing is known.

Until then, plan around $7,000 as a floor. Your TFSA contribution room for 2027 on January 1, 2027 will be your unused room at the end of 2026, plus the 2027 limit, plus any amounts you withdrew during 2026.

How is the 2027 TFSA limit set?

The TFSA dollar limit is indexed to inflation and rounded to the nearest $500. The indexing starts from a base of $5,000 in 2009. Because of the rounding, the limit stays flat until accumulated inflation pushes the indexed amount past the next $250 mark, which is why it stayed at $7,000 for 2024, 2025 and 2026.

The only year that broke this pattern was 2015, when the limit was set at $10,000 by a policy change and then returned to $5,500 in 2016. The RRSP works differently: its 2027 dollar limit of $35,390 is already published, as shown in our RRSP, TFSA and FHSA comparison.

TFSA room by year: every annual limit since 2009

The TFSA contribution limit 2026 cumulative total is $109,000, the sum of every annual limit from 2009 to 2026. Only people who were 18 or older and resident in Canada in 2009 have the full amount.

How much TFSA room do I have in 2026?

Your TFSA room in 2026 depends on the year you first qualified: the later of the year you turned 18 and the year you became a resident of Canada. You start accumulating the full annual limit in that year, with no reduction for arriving or turning 18 part way through.

Room does not build while you are a non-resident, and you need a valid social insurance number to open a TFSA. Newcomers should count only from their first year of residence, not from 2009.

How is TFSA room calculated?

The CRA calculates available TFSA room as this year's dollar limit, plus unused room from earlier years, plus withdrawals made in the previous year, minus contributions already made this year. Form RC343, Worksheet: TFSA contribution room, lays out the same steps.

Worked example for 2027

1. Leila had $12,000 of unused room on January 1, 2026 and contributed $10,000 during 2026. She has $2,000 of unused room left at the end of 2026.
2. In August 2026 she withdrew $4,000 for a car repair. That amount is added back on January 1, 2027, not in 2026.
3. Her room on January 1, 2027 will be $2,000 + $4,000 + the 2027 limit.
4. If the 2027 limit is $7,000, her room will be $13,000. If it rises, her room rises by the same amount.

Do TFSA withdrawals give me more room?

Yes, but only from the next January 1. A withdrawal made in 2026 is added back to your TFSA contribution room on January 1, 2027. Putting the money back in the same calendar year uses fresh room, and if you have none, it creates an excess taxed at 1% per month.

This same-year re-contribution is the most common cause of TFSA penalties. Our TFSA over-contribution penalty page shows how to remove an excess and ask the CRA for a waiver. To move money between two TFSAs without affecting room, ask the receiving institution for a direct transfer instead of withdrawing it yourself.

TFSA or FHSA for new savings in 2027?

If you are saving for a first home, the First Home Savings Account (FHSA) gives $8,000 of room a year with a tax deduction, which the TFSA does not. Many first-time buyers fill the FHSA first and use TFSA room for the rest. See our FHSA rules guide and the FHSA contribution limit page for the carry-forward rules.