TFSA Calculator
Project how much your Tax-Free Savings Account can grow over time, and see how much tax you save compared to holding the same investments in a regular taxable account.
TFSA Details
TFSA Summary
Year-by-Year Projection
| Year | Start Balance | Contribution | Growth | End Balance |
|---|---|---|---|---|
| 2027 | $0 | $7,000 | $420 | $7,420 |
| 2028 | $7,420 | $7,000 | $865 | $15,285 |
| 2029 | $15,285 | $7,000 | $1,337 | $23,622 |
| 2030 | $23,622 | $7,000 | $1,837 | $32,460 |
| 2031 | $32,460 | $7,000 | $2,368 | $41,827 |
| 2032 | $41,827 | $7,000 | $2,930 | $51,757 |
| 2033 | $51,757 | $7,000 | $3,525 | $62,282 |
| 2034 | $62,282 | $7,000 | $4,157 | $73,439 |
| 2035 | $73,439 | $7,000 | $4,826 | $85,266 |
| 2036 | $85,266 | $7,000 | $5,536 | $97,801 |
| 2037 | $97,801 | $7,000 | $6,288 | $111,090 |
| 2038 | $111,090 | $7,000 | $7,085 | $125,175 |
| 2039 | $125,175 | $7,000 | $7,931 | $140,105 |
| 2040 | $140,105 | $7,000 | $8,826 | $155,932 |
| 2041 | $155,932 | $7,000 | $9,776 | $172,708 |
| 2042 | $172,708 | $7,000 | $10,782 | $190,490 |
| 2043 | $190,490 | $7,000 | $11,849 | $209,340 |
| 2044 | $209,340 | $7,000 | $12,980 | $229,320 |
| 2045 | $229,320 | $7,000 | $14,179 | $250,499 |
| 2046 | $250,499 | $7,000 | $15,450 | $272,949 |
Planning for retirement?
See your full retirement income — CPP, OAS, RRIF & TFSA →How it works: The Tax-Free Savings Account (TFSA) allows Canadian residents aged 18+ to earn investment income tax-free. Contribution room accumulates annually and unused room carries forward. Withdrawals are tax-free and the withdrawn amount is added back to your room the following year. The tax-free benefit shown is the estimated tax you would have paid on investment growth in a regular taxable account.
Tax-free growth projection ($7,000/yr contributions)
Projected TFSA balance at 4%, 6%, and 8% average annual returns, assuming a $7,000 contribution every year starting from a $0 balance.
| Years | 4% return | 6% return | 8% return |
|---|---|---|---|
| 10 years | $87,404 | $97,801 | $109,518 |
| 20 years | $216,784 | $272,949 | $345,960 |
| 30 years | $408,298 | $586,612 | $856,421 |
Contributions are capped by your accrued contribution room. Years beyond 2026 assume the annual limit stays at $7,000 — a future-year estimate, since the real limit is only set once CRA confirms annual indexation.
Worked example: TFSA vs. a taxable account
$7,000/year, 6% average return, 20 years, 30% marginal tax rate.
The last row is a simplification: it applies your 30% marginal rate once, to the full $132,949 of growth. A real non-registered account pays tax annually as gains/dividends/interest are realized, which would slow its compounding relative to the TFSA — so the true gap is at least this large, likely larger.
Worked example: over-contribution penalty
If you over-contribute by $2,000 and leave the excess in your TFSA for 4 months before withdrawing it, the penalty is 1% × $2,000 = $20 per month × 4 months = $80 in total — charged whether or not the excess amount actually grew.
TFSA vs RRSP in one minute
A TFSA is funded with after-tax money and everything — contributions and growth — comes out tax-free. An RRSP is funded with pre-tax money (you get a deduction at your current marginal rate going in) but every dollar withdrawn is taxed as income later. As a heuristic: the TFSA tends to win when your marginal rate now is similar to or below your expected marginal rate in retirement; the RRSP tends to win when your rate now is meaningfully higher. For the full picture — refund-reinvestment math and your personal break-even retirement rate — use the RRSP vs TFSA Decision Tool, or read the RRSP vs TFSA guide.
TFSA in Canada
The Tax-Free Savings Account (TFSA) was introduced in 2009 for Canadian residents aged 18 and older. All investment income earned inside a TFSA — including interest, dividends, and capital gains — is completely tax-free.
Contribution room: Room accumulates each year based on the annual limit set by the CRA. The 2026 limit is $7,000. Unused room carries forward indefinitely. When you withdraw from a TFSA, that amount is added back to your room the following year. For your exact room by birth year, see the TFSA Contribution Room Calculator.
Over-contributions: Contributing more than your available room results in a penalty tax of 1% per month on the excess amount. This calculator helps you track your room to avoid over-contributions.
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Frequently asked questions
What is the TFSA contribution limit for 2026?
The 2026 annual TFSA contribution limit is $7,000. If you have been eligible since the TFSA was introduced in 2009 and have never contributed, your cumulative room through 2026 is $109,000 (it was $102,000 through 2025). Unused room carries forward indefinitely, and everyone gets the same dollar limit regardless of income.
What happens if I over-contribute to my TFSA?
Over-contributions are subject to a penalty tax of 1% per month on the highest excess amount in that month. For example, a $2,000 over-contribution left in place for 4 months costs 1% × $2,000 = $20/month, or $80 total, until you withdraw the excess or new room opens up on January 1. You must file CRA Form RC243 to report and pay the tax on excess amounts.
Are TFSA withdrawals tax-free?
Yes. All withdrawals from a TFSA are completely tax-free and do not count as taxable income. But there is a timing trap: the amount you withdraw is only added back to your contribution room on January 1 of the following calendar year — not immediately. Withdraw and then re-contribute the same amount in the same calendar year (with no other room available) and you can trigger an over-contribution penalty even though your balance never grew.
Do TFSA gains affect my taxes or benefits?
No. Interest, dividends, and capital gains earned inside a TFSA — and the withdrawals themselves — never touch your taxable income. That means TFSA activity does not trigger the OAS clawback, does not reduce GIS or other income-tested benefits, and doesn't need to be reported as income on your T1. This is the main structural advantage over an RRSP or a non-registered account.
TFSA vs RRSP — which first?
As a rule of thumb, prioritize the TFSA if your marginal tax rate now is similar to or lower than what you expect in retirement, and prioritize the RRSP if your rate now is meaningfully higher (the upfront deduction is worth more). Most people benefit from using both. See our RRSP vs TFSA Decision Tool for a personalized break-even calculation.
What investments can a TFSA hold?
A TFSA can hold cash, GICs, mutual funds, ETFs, individual stocks and bonds — most of the same qualified investments allowed in an RRSP. One caution: if the CRA determines you are actively day-trading inside your TFSA, it can reclassify the gains as business income and tax them at your full marginal rate, even though the account is normally tax-free.
What happens to my TFSA if I move abroad?
Your existing TFSA balance stays tax-free and you can keep the account, but you stop accruing new contribution room for any year you are a non-resident. If you contribute while a non-resident, CRA charges a 1% per month tax on those contributions until withdrawn. Room you had already accumulated before leaving Canada is not lost — check the CRA non-resident TFSA rules before contributing from abroad.
Is there a lifetime TFSA limit?
No. There is no lifetime dollar cap — only your cumulative contribution room, which grows every year you're 18+ and a Canadian resident ($7,000 for 2026) and carries forward forever if unused. For your exact room by birth year, see the TFSA Contribution Room Calculator.
Sources
Last updated July 2026. Reflects 2026 tax year rates.
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