TFSA Growth Calculator 2026
Last verified · Methodology
Calculate your tax-free TFSA balance over time. The 2026 annual TFSA limit is C$7,000. Enter your starting balance, annual contribution, expected return, and years to see projected tax-free growth and total cumulative room.
TFSA Details
Growth Over Time
2026 annual TFSA limit: $7,000
Cumulative TFSA room (since 2009, full eligibility): ~$95,000
Estimated available room (based on starting balance): ~$95,000
All TFSA growth and withdrawals are completely tax-free. Contributions are not tax-deductible. Over-contributing to a TFSA results in a 1% per month penalty tax. Annual limits are set each year by the federal government. Not financial advice.
How the TFSA Works
The Tax-Free Savings Account (TFSA) was introduced by the federal government in 2009. Unlike the RRSP, TFSA contributions are made with after-tax dollars (contributions are not deductible), but all growth within the account and all withdrawals are completely tax-free.
Contribution room accumulates from the year you turn 18 (or 2009, whichever is later). The annual limits have varied: $5,000 (2009 to 2012), $5,500 (2013 to 2014), $10,000 (2015), $5,500 (2016 to 2018), $6,000 (2019 to 2022), $6,500 (2023), $7,000 (2024 to 2026). Total cumulative room for someone eligible since 2009 is approximately $95,000 in 2026.
Withdrawals from a TFSA are tax-free at any time for any reason. The amount withdrawn is added back to your contribution room on January 1 of the following year. This makes the TFSA extremely flexible for both long-term investing and as an emergency fund.
Over-contributing to a TFSA results in a penalty tax of 1% per month on the excess amount until it is withdrawn. Always check your available room via CRA My Account before making large TFSA contributions.
TFSA Annual Limits (Selected Years)
| Year | Annual Limit | Cumulative Total |
|---|---|---|
| 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 | ~$95,000 |
| Annual Contribution | 5 years | 10 years | 20 years |
|---|---|---|---|
| C$3,500 | C$19,700 | C$46,200 | C$129,000 |
| C$5,000 | C$28,200 | C$66,000 | C$184,300 |
| C$7,000 | C$39,500 | C$92,400 | C$258,000 |
| C$10,000 | C$56,400 | C$132,000 | C$368,600 |
The annual TFSA contribution limit for 2026 is $7,000. If you have been eligible since the TFSA was introduced in 2009 and have never contributed, your cumulative room in 2026 is approximately $95,000. Unused room accumulates each year and is not lost.
Yes. Withdrawals from a TFSA are added back to your contribution room on January 1 of the following calendar year. So if you withdraw $10,000 in 2026, you can re-contribute that $10,000 starting January 1, 2027, in addition to the 2027 annual limit. Do not re-contribute in the same calendar year as the withdrawal unless you have unused room from prior years, as over-contributing attracts a 1% per month penalty.
A TFSA can hold the same qualified investments as an RRSP: cash, GICs, mutual funds, ETFs, publicly traded stocks, bonds, and certain other securities. All growth, dividends, and interest inside a TFSA are completely tax-free regardless of how large the balance grows. Foreign withholding taxes (e.g. US dividend taxes) may still apply on foreign investments inside a TFSA.
It depends on your situation. The TFSA is generally better if you expect your tax rate in retirement to be equal to or higher than now, if you need flexibility (withdrawals are always tax-free and do not affect income-tested benefits), or if you are in a low income bracket where RRSP deductions provide less benefit. The RRSP is generally better if you are in a high bracket now and expect a lower bracket in retirement.
No. TFSA withdrawals are not counted as income, so they do not affect income-tested benefits such as Old Age Security (OAS), the Guaranteed Income Supplement (GIS), the Canada Child Benefit (CCB), or GST/HST credits. This is a significant advantage of the TFSA over RRSP and RRIF withdrawals.