Calculator  ·  Tax Year 2026

TFSA Calculator

Tax-Free Savings Account · Quebec

A TFSA lets any Canadian resident aged 18 or older invest money and earn returns completely free of tax — no tax on interest, dividends, or capital gains, and no tax when you withdraw. For Quebec residents, this is especially valuable because Quebec has some of the highest marginal tax rates in North America. Every dollar of growth inside a TFSA stays in your pocket rather than going to the CRA or Revenu Québec.
Your Information
Current Age
Annual Contribution
The current annual maximum is $7,000
Current TFSA Balance optional
Combined value of all existing TFSA accounts
Expected Annual Return
Target Retirement Age
Target Savings Amount optional
Leave blank to see monthly equivalent of annual contribution
Results
Lifetime TFSA Room
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Projected TFSA at Retirement
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Total Contributions
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Tax-Free Growth Earned
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Monthly Contribution
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TFSA final value
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Taxable account (same contributions) 26.5% tax on gains
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Extra kept tax-free with TFSA
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Assumptions — Tax Year 2026: TFSA annual limit: $7,000 (2026)  ·  Lifetime room calculated from year you turned 18 (minimum 2009) through 2026  ·  Taxable comparison assumes 26.5% Quebec average rate on gains.
Source: CRA
Projected Growth
Contributions
Tax-Free Growth
TFSA vs Taxable Account

This chart shows what the same annual contributions would be worth at retirement inside a TFSA versus in a regular taxable investment account, assuming a 26.5% average Quebec tax rate applied to investment gains each year. The gap illustrates how much tax-free compounding adds up over time.

How It Works

Annual Contribution Limits

The annual TFSA limit is set by the federal government and applies equally across Canada. The current annual limit is $7,000. Limits have varied since the TFSA was introduced in 2009 — from $5,000 in the early years up to $10,000 in 2015, before settling at $5,500–$7,000 in recent years. You can always verify your current limit on the CRA website or in My Account.

Lifetime Contribution Room

Your total available TFSA room equals the sum of annual limits for every year since you turned 18 (or since 2009, whichever is later), minus your total past contributions, plus any amounts you withdrew in prior calendar years. This calculator shows your cumulative room based on your age — your exact available room, accounting for prior contributions and withdrawals, is always shown in CRA My Account.

Withdrawals & Re-contributions

You can withdraw from your TFSA at any time, for any reason, with no tax consequences. Unlike an RRSP, the withdrawn amount is added back to your contribution room on January 1st of the following year. This means if you withdraw $10,000 in December, you can re-contribute that same $10,000 starting January 1st, in addition to the new year's annual limit. Never re-contribute in the same calendar year you withdrew, as this creates an over-contribution.

Over-contribution Penalty

If you contribute more than your available room, the excess is subject to a 1% per month penalty tax until the over-contribution is removed or new room becomes available. The CRA tracks this automatically and will send a letter if you exceed your limit. To avoid penalties, always check your available room in CRA My Account before making a large contribution, especially after a withdrawal and re-contribution in the same year.

TFSA vs RRSP: Which Is Better for Quebec Residents?

Both accounts shelter investment growth from tax, but in different ways. An RRSP gives you an immediate tax deduction when you contribute and taxes your withdrawals as income — it is best when your income today is higher than you expect in retirement. A TFSA gives no upfront deduction but all withdrawals are completely tax-free — it is best when your income in retirement may be similar to or higher than today, or when you want flexibility to withdraw without tax consequences at any time. For Quebec residents in the lower and middle income brackets, a TFSA often wins because withdrawals do not affect income-tested benefits such as the GIS, OAS, or Quebec's Solidarity Tax Credit (Crédit d'impôt pour solidarité). Many financial planners recommend maximizing both accounts, using the RRSP for higher-income years and the TFSA for everything else.

Questions & Answers
What is the TFSA contribution limit in Quebec?
The TFSA contribution limit is set federally and is the same across all provinces, including Quebec. The current annual limit is $7,000. Your total available room depends on how many years you have been eligible (since turning 18 or since 2009, whichever is later) minus any past contributions, plus any withdrawals made in prior calendar years. The maximum lifetime room for someone who has been eligible since 2009 is $109,000 as of 2026.
Can I withdraw from my TFSA at any time?
Yes. You can withdraw any amount from your TFSA at any time without paying tax and without reducing your contribution room permanently. The withdrawn amount is added back to your contribution room on January 1st of the following year. There is no minimum age for withdrawal and no limit on how often you can withdraw. This flexibility is one of the TFSA's main advantages over the RRSP, where early withdrawals are taxed and room is permanently lost.
What happens if I over-contribute to my TFSA?
If your total TFSA contributions in a calendar year exceed your available room, the excess is subject to a 1% per month penalty tax until you remove the over-contribution or gain new room on January 1st. Unlike the RRSP, there is no $2,000 buffer — even $1 over your limit triggers the penalty. The CRA tracks contributions automatically. If you receive a penalty notice, withdraw the excess amount immediately to stop the penalty from accumulating further.
TFSA vs RRSP — which is better for Quebec residents?
It depends on your income and retirement plans. If you are in a high tax bracket now and expect a lower income in retirement, the RRSP's upfront deduction is more valuable. If your income is lower now, if you expect high retirement income, or if you want the flexibility to withdraw without tax impact, the TFSA is often better. Quebec residents should also note that TFSA withdrawals do not count as income for provincial benefit calculations, including the Solidarity Tax Credit, which is not the case for RRSP withdrawals. Many advisors recommend using both accounts strategically.
Does a TFSA affect Quebec government benefits?
No. TFSA withdrawals are not considered income under either federal or Quebec provincial rules, so they do not affect income-tested programs such as Old Age Security (OAS), the Guaranteed Income Supplement (GIS), or Quebec's Solidarity Tax Credit. This is a significant advantage over RRSP withdrawals, which are taxable income and can reduce these benefits in retirement. For lower-income retirees who receive the GIS, using a TFSA for retirement savings instead of an RRSP can result in meaningfully higher total income in retirement.
Can I hold US stocks in my TFSA?
Yes, you can hold US-listed stocks and ETFs in your TFSA. However, there is an important drawback: the US government withholds a 15% tax on US-source dividends paid to Canadian TFSAs, and this withholding tax cannot be recovered, unlike in a non-registered account where you can claim a foreign tax credit. For this reason, many investors prefer to hold US dividend-paying investments in an RRSP (which is exempt from this withholding under the Canada–US tax treaty) and keep growth-oriented US stocks or Canadian investments in the TFSA.
What is the current lifetime TFSA contribution room?
For someone who was 18 or older on January 1, 2009, the cumulative lifetime TFSA room is $109,000 as of 2026. This includes every annual limit since 2009: $5,000 per year from 2009–2012, $5,500 in 2013–2014, $10,000 in 2015, $5,500 in 2016–2018, $6,000 in 2019–2022, $6,500 in 2023, and $7,000 per year from 2024–2026. If you turned 18 after 2009, your lifetime room is smaller because you only accumulate room from the year you turned 18 onward.