The 2027 TFSA contribution limit
On the Income Tax Act formula and the published CPI, the 2027 limit works out to $7,500 Our calculation · CRA confirms in November
The TFSA dollar limit is not set by Budget or by guesswork. It is $5,000 indexed to inflation since 2009 and rounded to the nearest $500, a formula in the Income Tax Act that runs on Statistics Canada's CPI. This page runs it, shows every year's limit and your cumulative room, and switches to CRA's published figure the day it appears.
The 2027 limit and the room behind it
2027 dollar limit
$7,500
formula result on the published CPI; CRA confirms in November
Room since 2009, never contributed
$116,500
$109,000 for 2009 to 2026, plus 2027
2027 indexation factor
2.6%
CPI October 2025 to September 2026 over October 2024 to September 2025 · 2026 factor was 2.0%
Sources: Income Tax Act ss.117.1 and 207.01; CRA, MP, DB, RRSP, DPSP, ALDA, TFSA limits and the YMPE, read daily (verified October 22, 2026); Statistics Canada table 18-10-0004-01, latest month September 2026. The formula result is a RetireSmarter calculation from the published CPI; it reproduces CRA's limits for 2023 to 2026 exactly, but CRA's November announcement is the figure to plan on.
TFSA limit by year, 2009 to 2026
Add the years from when you turned 18 (or 2009) to find your lifetime room before contributions and withdrawals.
| Year | Annual limit | Cumulative since 2009 |
|---|---|---|
| 2026 | $7,000 | $109,000 |
| 2025 | $7,000 | $102,000 |
| 2024 | $7,000 | $95,000 |
| 2023 | $6,500 | $88,000 |
| 2022 | $6,000 | $81,500 |
| 2021 | $6,000 | $75,500 |
| 2020 | $6,000 | $69,500 |
| 2019 | $6,000 | $63,500 |
| 2018 | $5,500 | $57,500 |
| 2017 | $5,500 | $52,000 |
| 2016 | $5,500 | $46,500 |
| 2015 | $10,000 | $41,000 |
| 2014 | $5,500 | $31,000 |
| 2013 | $5,500 | $25,500 |
| 2012 | $5,000 | $20,000 |
| 2011 | $5,000 | $15,000 |
| 2010 | $5,000 | $10,000 |
| 2009 | $5,000 | $5,000 |
Source: CRA, TFSA dollar limits by year, verified October 22, 2026. The 2015 limit was $10,000 under a one-year change later reversed.
How the limit is set
The Income Tax Act defines the TFSA dollar limit as $5,000 indexed by the same factor that moves the federal tax brackets each year, compounded since 2009 and rounded to the nearest $500. The indexation factor for a year is the average CPI for October to September of the previous year over the same period a year earlier. The rounding is why the limit sits at one figure for several years and then steps up: the unrounded amount keeps compounding underneath ($7,372 for 2027), and the published limit moves only when it crosses a $250 boundary.
CRA publishes the official figure each November with the indexation factor, after the September CPI, and the 2027 limits tracker picks it up the same day. The inflation page shows the monthly CPI behind the factor.
Rules that matter on January 1
- New room opens January 1, 2027, and so does any 2026 withdrawal. There is no deadline to use it; unused room carries forward indefinitely.
- Re-contributing in the same year counts as a new contribution. Take money out in 2027 and the room does not return until January 1, 2028.
- Over-contributions cost 1% a month on the excess. Check your room before topping up, especially across several institutions.
- No income test, no age limit on top. Anyone 18 or over who is resident in Canada accumulates room; there is no upper age and no requirement to have earned income, unlike an RRSP.
- Non-residents stop accumulating room while away and pay a 1% monthly tax on contributions made as a non-resident.
- Couples: you can give your spouse money to contribute to their own TFSA with no attribution, and naming a spouse as successor holder lets the account pass intact without touching their room.
Why the limit matters more in retirement
TFSA withdrawals are tax-free and are not income for the GIS, the OAS clawback or any other income-tested benefit. For a retiree, that makes $7,500 of new room the first place to move money each January, usually from a non-registered account or from RRSP withdrawals taken before 71. The RRSP vs TFSA calculator and our withdrawal-order guide cover the sequencing.
Where should the new room go?
Compare RRSP and TFSA on your own income and retirement tax rate.
Frequently asked questions
What is the TFSA limit for 2027?
CRA has not published it yet; it usually does in November. The limit is $5,000 indexed from 2009 by each year's indexation factor and rounded to the nearest $500. The 2027 factor is 2.6% on the CPI Statistics Canada has published, which takes the unrounded limit to $7,372 and rounds to $7,500. That is our calculation from the published data, not CRA's announcement, and the official figure is the one to plan on.
How much total TFSA room do I have in 2027?
If you were 18 or older in 2009, have lived in Canada throughout, and have never contributed, your room on January 1, 2027 is $116,500: $109,000 for 2009 to 2026 plus the 2027 limit. If you turned 18 later, add up the limits from that year on. Withdrawals you made in 2026 are added back on January 1, 2027. Your exact figure is in CRA My Account, though it lags by a year, so keep your own record.
When does the new room become available?
On January 1, 2027. Contributions dated December 31 or earlier count against 2026 room. Withdrawals made in 2026 are also added back on January 1; a withdrawal made in 2027 does not come back until January 1, 2028.
What happens if I over-contribute?
CRA charges 1% per month on the highest excess amount in the account for every month it stays there. Withdraw the excess as soon as you notice; the penalty stops the month after. The most common cause is re-contributing a withdrawal in the same calendar year.
Why is the limit rounded to $500?
The Income Tax Act indexes the $5,000 base amount by the cumulative indexation factors since 2009 and then rounds the result to the nearest $500. That is why the limit stays flat for several years and then jumps, and why the unrounded figure matters: it keeps compounding in the background even in years when the rounded limit does not change.
Do I need earned income to contribute?
No. Unlike an RRSP, TFSA room depends only on age (18 or over), residency and the year, not on income. Students, retirees and people with no earnings all accumulate the same room.
Is a TFSA better than an RRSP for me?
For most retirees and for anyone likely to qualify for the GIS, yes: TFSA withdrawals are tax-free and do not count as income for the GIS, the OAS clawback or any other income-tested benefit, while RRSP and RRIF withdrawals do. Higher earners who expect a lower tax rate in retirement still benefit from the RRSP deduction. Our RRSP vs TFSA calculator compares both on your own numbers.
Until CRA publishes the 2027 limit, the figure on this page is a RetireSmarter calculation from Statistics Canada's published CPI using the Income Tax Act formula. It is not a forecast and not a CRA announcement; CRA's figure replaces it the day it is published. Information only, not advice.
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