The TFSA limit for 2026 is $7,000, but how much you can actually put in depends on your own history. Getting it wrong triggers a tax of 1% a month on the excess.
This guide gives the 2026 limit, the CRA's room formula with its worked example, why your own records beat your CRA account figure, and what to do if you over-contribute, using Canada Revenue Agency pages read on 26 October 2026.
The CRA says the TFSA dollar limit for 2026 is $7,000 and that it is added to your contribution room on January 1, 2026. Your available room is the total of the current year's dollar limit, any unused contribution room from previous years and any withdrawals made the previous year, minus contributions already made this year. Qualifying transfers, exempt contributions and specified distributions have no effect on available room. It applies whether you have one TFSA or several.
| Action | Effect on room (CRA) |
|---|---|
| Contribute | Reduces available room immediately by the amount contributed (not immediately updated in your CRA account) |
| Withdraw | You regain the same amount as new room on January 1 of the following year, with that year's dollar limit |
| Contribute more than your room | You are taxed on the excess amount |
The CRA's example: Alex had no unused room at the end of 2024, had $7,000 of room at the start of 2025, contributed $1,000 and withdrew $4,000 in 2025. At the start of 2026 their room is $6,000 unused plus $4,000 withdrawn in 2025 plus the $7,000 2026 limit, which is $17,000.
The CRA says to use your own financial records to calculate your room, not the figure in your CRA account, because your account is only updated once a year in the spring with the previous year's transactions after issuers report. Financial institutions send each calendar year's transactions at the end of February of the following year, and the CRA says records from 2025 would be processed by April 2026. In the CRA's Moira example, trusting the January 1 balance led to a $4,000 over-contribution. Use the Form RC343 worksheet or the My Account calculator, and count every TFSA you hold.
Withdraw the excess as soon as possible, without waiting for the CRA: any excess is taxable at 1% per month for as long as it remains in the account, and a deliberate over-contribution can bring additional tax consequences. Our illustration: a $4,000 excess left for 3 months costs $120. You must still report the excess by filing a TFSA Return even after you withdraw it; the CRA may notify some holders in late spring and otherwise you may get a TFSA notice of assessment later in the summer. Non-residents receive a notice of assessment showing when the excess began and how long it stayed. See our FHSA guide for the home-buying account and our Canada expat tax guide if you leave Canada.
CRA: Calculate your TFSA contribution room, CRA: If you over-contribute to a TFSA, CRA: Tax-free Savings Account (TFSA).