We have chosen for you. It’s not the right location? You can change it anytime.
Test your knowledge
Suppose that you used all of your tax-free savings account (TFSA) contribution room in the past, and your new dollar limit for 2026 is $7,000. As well, you withdrew $3,000 earlier this year. What is the maximum amount you can contribute between now and the end of the year?
May 28th, 2026
Answer: $7,000.
A TFSA withdrawal creates an equivalent amount of contribution room… for the following year. In this example, your contribution room for 2026 does not change. However, your contribution room for 2027 will be increased by $3,000.
If you were to deposit more than $7,000 in 2026, you would end up with an over-contribution and be liable for a penalty of 1% per month on any amount in excess of $7,000.
To find out more about TFSA withdrawals, read this article.
The following sources were used to prepare this article.
Government of Canada, “Calculate your TFSA contribution room.”
