Welcome to the $100K Club — Your TFSA Just Hit a Milestone
If you’ve been eligible for a Tax-Free Savings Account (TFSA) since it launched in 2009, your total lifetime contribution room has officially reached $109,000 in 2026.
That’s not a savings account anymore. That’s a full investment portfolio — and it deserves a strategy to match.
The 2026 annual TFSA contribution limit is confirmed at $7,000. Combined with every year since 2009, the total available room is now $109,000 for eligible Canadians who have never contributed a single dollar. If you’ve been contributing all along, your room may differ — but the milestone is still worth understanding.
TFSA Contribution Limits: Every Year Since 2009
| Year | Annual Limit | Cumulative Total |
|---|---|---|
| 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 |
Note: You must be a Canadian resident aged 18+ with a valid SIN to accumulate room. Unused room carries forward automatically — you never lose it.
How to Calculate Your Personal Contribution Room
Your actual available room depends on your personal history. Here’s the formula:
Available room = Total lifetime limit − Total contributions + Total withdrawals (from prior years)
A few important rules:
- Withdrawals add back to your room — but not until January 1 of the following year
- If you over-contribute, the CRA charges 1% per month on the excess amount — it adds up fast
- You can check your exact room through CRA My Account (though it may lag by a few months)
Stop Using Your TFSA as a Savings Account
This is the most common mistake Canadians make. They open a TFSA at a bank, park cash in it earning 3–4% interest, and call it a day.
That works — but it misses the real power of the account.
The TFSA’s biggest advantage is that all growth is tax-free. That means capital gains, dividends, and interest earned inside the account are never taxed — not even when you withdraw. The bigger the investment return inside a TFSA, the more powerful the tax shelter becomes.
Here’s a simple comparison. Say you invest $50,000 and it doubles to $100,000 over 10 years:
| Inside TFSA | Outside TFSA (taxable account) | |
|---|---|---|
| Starting amount | $50,000 | $50,000 |
| Value after 10 years | $100,000 | $100,000 |
| Tax on $50,000 gain (at 25%) | $0 | ~$6,250+ |
| You keep | $100,000 | ~$93,750 |
The bigger your gains, the bigger the tax-free advantage.
Smarter Ways to Use Your $109,000 TFSA Room
1. Invest in Growth Assets, Not Just Cash
Use the TFSA for stocks, ETFs, or index funds — assets with real growth potential. Keep low-return savings in a regular savings account if needed. Reserve the TFSA room for where it does the most tax-sheltering work.
2. TFSA vs. RRSP: Which First?
A simple rule of thumb:
- Lower income (under ~$50,000)? TFSA first — RRSP deductions give less benefit at lower tax rates
- Higher income ($80,000+)? RRSP first — bigger deduction now, withdraw later at lower rates
- Middle income? Split between both based on your goals
3. Re-Contribute After Withdrawals
Unlike RRSPs, TFSA withdrawals are not permanently lost. If you pull $20,000 out this year, that $20,000 comes back to your contribution room on January 1 next year. This makes the TFSA ideal for medium-term goals like a car, a down payment, or an emergency fund.
4. Avoid Foreign Dividend Stocks (or Know the Trade-off)
US stocks that pay dividends inside a TFSA are subject to a 15% US withholding tax that Canada cannot recover — because the TFSA is not recognized as a retirement account under the Canada-US tax treaty. For US dividend stocks, consider holding them in your RRSP instead, which does get treaty protection.
5. Name a Successor Holder
If you’re married or in a common-law relationship, designate your spouse as a successor holder (not just a beneficiary). This lets them inherit your TFSA tax-free and keep it intact as a TFSA — without using up their own contribution room.
Who Qualifies for the Full $109,000?
To have the maximum $109,000 in room, you need to:
- Be a Canadian resident with a valid SIN
- Have been 18 or older in 2009 (born in 1991 or earlier)
- Never have made a single TFSA contribution
If you turned 18 after 2009, your maximum room is lower — you only accumulate room starting the year you turn 18. For example, if you turned 18 in 2020, your 2026 room would be $43,500.
The Bottom Line
$109,000 in tax-free investment room is a serious financial tool. Whether you’re just getting started or have been maxing out for years, the key is to treat your TFSA like an investment account — not a piggy bank.
Fill it with assets that grow. Let compounding do the work. Pay zero tax on the gains.
Need help figuring out the right TFSA strategy for your income and goals? Book a consultation with our team — we’ll help you make every dollar count.