How much you can contribute, how to check your room, and how to avoid the 1% per month over-contribution penalty
The TFSA contribution limit for 2026 is $7,000. If you have never contributed to a TFSA and have been a Canadian resident since 2009, your total cumulative room is $109,000. But your personal room depends on your contribution history, withdrawals, and when you turned 18.
| Year | Annual Limit | Cumulative Room (since 2009) |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
| 2019 | $6,000 | $63,500 |
| 2020 | $6,000 | $69,500 |
| 2021 | $6,000 | $75,500 |
| 2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
| 2025 | $7,000 | $102,000 |
| 2026 | $7,000 | $109,000 |
Important: The cumulative room of $109,000 applies only if you were 18+ in 2009, have been a Canadian resident every year since, and have never contributed a single dollar. Most people's room is lower because they have contributed in past years.
Your personal TFSA room is calculated as:
Total room accumulated since age 18 (or 2009) − total contributions made + total withdrawals from prior years
Tip: Withdrawals from a TFSA are added back to your contribution room — but only on January 1 of the following year. If you withdraw $5,000 in November 2026, you cannot re-contribute that $5,000 until January 1, 2027.
Do not rely on your financial institution's records — they only see contributions made with them. CRA tracks your total room across all institutions.
If you contribute more than your available room, CRA charges a penalty of 1% per month on the excess amount until it is withdrawn. This adds up quickly.
Example: You over-contribute by $10,000 for 6 months = $600 penalty. CRA does not automatically forgive this — you must file a TFSA Return (RC243) and pay the penalty.
The most common cause of over-contribution is re-contributing a withdrawal in the same calendar year. Always wait until January 1 of the following year.
All growth — interest, dividends, and capital gains — inside a TFSA is completely tax-free, including when withdrawn.
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