TFSA Calculator
Project your Tax-Free Savings Account balance with monthly contributions and compound growth. All gains tax-free forever.
Details
Result
Tax-Free Balance
C$1,590,637
Total Contributed
C$259,860
Tax-Free Gains
C$1,330,777
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
Why TFSA is Canada's best account
Tax-Free Savings Account (CRA overview): contributions are after-tax, but ALL growth and withdrawals are 100% tax-free forever. Dividends, interest, capital gains — zero tax, no reporting. It is the most tax-efficient account Canada offers.
2026 contribution room
Annual limit: $7,000 (indexed to CPI, rounded to nearest $500). If you have been eligible (18+, resident, valid SIN) since 2009 and never contributed, your lifetime room is around $102,000. Unused room carries forward forever.
The withdrawal-and-recontribute trap
If you withdraw from TFSA, the room does NOT come back until January 1 of the following year. Re-contributing in the same year causes over-contribution — 1% per month penalty. Always track withdrawals in CRA My Account.
Best use cases
Emergency fund (liquid + tax-free growth), long-term stock investing (all gains tax-free forever), saving for any goal that is not a house (use FHSA for that first). Under ~$55k income, contribute to TFSA before RRSP.
Common questions about TFSA
What is the 2026 TFSA contribution limit?+
$7,000 for 2026 (indexed to CPI, rounded to nearest $500). If you have been eligible (18+, Canadian resident) since 2009 and never contributed, your lifetime room is around $102,000. Unused room carries forward forever.
Is TFSA completely tax-free?+
Yes — contributions are after-tax (no deduction), but ALL growth, dividends, and withdrawals are 100% tax-free, forever. The CRA receives nothing. This is the best tax shelter Canada offers, period.
Can I over-contribute to TFSA?+
No — 1% per month penalty on the excess amount until withdrawn. Check your contribution room in CRA My Account before depositing. Common mistake: withdrawing and re-contributing in the same year — the withdrawal only restores room the following January 1.
TFSA vs FHSA for a first home?+
FHSA wins if you are buying a first home within 15 years — you get RRSP-style tax deduction on contribution AND TFSA-style tax-free withdrawal for home. Use FHSA first, then TFSA for anything above the $40k FHSA lifetime cap.
What investments should I hold in a TFSA?+
Highest-growth assets: Canadian and US equity ETFs (VFV, XEQT, VEQT), growth stocks. Avoid bonds and GICs inside TFSA unless short-horizon — the tax shelter is wasted on 4% interest. Caution with US dividend stocks: 15% IRS withholding tax applies inside TFSA (not recoverable, unlike in RRSP where the Canada-US treaty exempts). Day-trading inside TFSA risks CRA reclassifying as business income — fully taxable and penalties. Hold for months+, not minutes.
Can I name a TFSA beneficiary or successor?+
In all provinces except Quebec you can name a "successor holder" (spouse/common-law partner) — they inherit the TFSA intact, preserving tax-free status and not using their own contribution room. Or name any "beneficiary" (adult child, parent) — account collapses at death, value paid out, any growth after death is taxable in the estate. Quebec handles this via a Will. Always designate a successor holder if married — avoids probate and preserves room.