If you’re hoping to max out your TFSA contribution next year, the Canada Revenue Agency (CRA) has revealed just how much you can contribute.
The TFSA program, introduced in 2009, is a way for Canadians who are 18 or older to set money aside tax-free throughout their lifetime. Contributions to the TFSA are not deductible for income tax purposes.
Any amount that is contributed, or income earned in the account (such as investment income and capital gains), as well as withdrawals, is “generally tax-free,” states the CRA.
The federal government sets the maximum contribution limit every year. The 2026 limit is unchanged from 2025 and remains at $7,000. This amount has been indexed for inflation each year since 2009 and rounded to the nearest $500.
CRA
Your TFSA contribution room grows each year, even if you don’t file an income tax and benefit return or open an account.
What does this TFSA contribution limit mean for you?
Your contribution room starts in the year you turn 18 and accumulates every year after that.
Here’s a quick rundown of what this contribution limit means for your 2026 financial goals. If you’ve maximized your 2025 TFSA amount, you can contribute another $7,000 in 2026.
If you don’t use up your maximum contribution limit, that amount carries forward into the next year, allowing you to save more money in the account.
The total limit for someone who has never contributed to a TFSA and was at least 18 when the program started in 2009 has increased from $102,000 in 2025 to $109,000 in 2026.
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You can find your personalized TFSA contribution room information on your MyCRA account.
It’s important to note that penalties do apply if you contribute more than your available TFSA contribution room. According to the CRA, you’ll be required to pay a tax of one per cent per month on the highest excess amount in your account for each month it remains over the limit.
Canadians who want to open a TFSA can contact their financial institution, credit union, or insurance company. They’ll need to provide a SIN and date of birth.
The deadline to contribute to your TFSA for the 2025 tax year is Dec. 31.
You can find out more information about TFSAs on the CRA website.
The CRA also unveiled the income tax brackets for 2026 and the benefit and credit payments that are increasing next year.