TFSA contribution room for 2027: what changes Jan 1
The 2027 dollar limit is not official yet. Here is what is certain, what is expected, and what to decide before December 31.
Every January 1, your Tax-Free Savings Account contribution room grows. Three amounts are added at once, and the third is the one most people forget.
What is official, as of October 31, 2026
The Canada Revenue Agency (CRA) has not yet published the 2027 TFSA dollar limit. Its limits table lists $7,000 for 2026, the same figure as in 2024 and 2025. In recent years the CRA has announced the next year's TFSA limit in late November or early December; the 2026 figure was posted on December 1, 2025.
What is fixed is the method. The CRA states that the TFSA dollar limit is indexed to inflation and rounded to the nearest $500. Several Canadian commentators have run that calculation with the inflation data published so far and expect $7,500 for 2027. That is a projection, not an announcement. This note will be updated the day the CRA publishes the figure.
The three amounts added on January 1
- The 2027 dollar limit. It is the same for every eligible person: a resident of Canada, 18 or older, with a valid Social Insurance Number. Room starts accumulating in the year you turn 18 (or the year you become a resident, if later), whether or not you open an account. (The FHSA works differently: its room only starts once you open one.)
- Your unused room from previous years. Room carries forward with no expiry. Someone who has been eligible every year since 2009 and has never contributed has $109,000 of room in 2026, the sum of every annual limit from 2009 to 2026.
- Everything you withdrew during 2026. A withdrawal does not give room back immediately. The CRA adds it back as new room on January 1 of the following year.
A worked example
Suppose that at the end of 2026 you have $3,000 of unused room, and you withdrew $4,000 during the year.
| Item | Amount |
|---|---|
| Unused room at the end of 2026 | $3,000 |
| Withdrawals made during 2026 | $4,000 |
| 2027 dollar limit (not yet announced; planning figure) | $7,000 |
| Available room on January 1, 2027 | $14,000 |
If the CRA confirms $7,500, the total becomes $14,500. Nothing else in the arithmetic changes.
The December decision
Because withdrawals return the following January, timing matters. If you already plan to take money out early in 2027, for a down payment, a car or a move to a different account, withdrawing it in December 2026 instead brings that room back on January 1, 2027 rather than January 1, 2028.
Two practical cautions. Investments must be sold and the cash must leave the account before December 31, so ask your institution for its year-end cut-off rather than assuming the last business day. And if you are only moving a TFSA from one institution to another, ask for a direct transfer. A qualifying transfer between your own TFSAs does not affect your room; a withdrawal followed by a new deposit does.
The opposite mistake is common: withdrawing in the spring and putting the same money back in the fall. If you had no unused room left, that re-deposit is an over-contribution, even though the account balance ends up where it started.
Over-contributions cost 1% a month
If you contribute more than your available room, the CRA charges a tax of 1% per month on the highest excess amount in each month, for as long as the excess remains in the account. Unlike the RRSP, there is no $2,000 cushion. If you discover an excess, removing it promptly limits the cost; the CRA explains the steps on its over-contribution page.
Do not rely on your CRA account in January
The TFSA room displayed in your CRA account is updated once a year. Financial institutions report the previous year's transactions at the end of February, and the CRA processes them in the spring. On January 1, 2027, your CRA account will show the new dollar limit but will not yet reflect what you contributed or withdrew in 2026.
The CRA's own guidance is to calculate your room from your own records: statements from every TFSA you hold, at every institution. Form RC343 is the CRA's worksheet for exactly this.
Before December 31
- Add up 2026 contributions and withdrawals across all of your TFSAs.
- Decide whether any early-2027 withdrawal should happen in December instead.
- Use any remaining 2026 room only if the money can stay invested.
- Set a reminder to check the CRA's announcement of the 2027 limit. Other year-end dates are in Key dates for the 2027 tax season.
- In January, contribute from your own calculation, not the CRA account figure.
Noted.
Sources
Figures in this note were checked against these sources on the date shown above.
This note is general education, not personal financial, tax or legal advice. Rules and figures change; confirm with the source and, where needed, a qualified professional. Terms are defined in the glossary.
