What is the TFSA contribution limit 2026 and who is eligible?

The TFSA limit is $7,000 for 2026. You must be 18 or older, a Canadian resident, and have a valid SIN to accumulate room. Unused room carries forward, and withdrawals add back the next January. Check your current space in CRA My Account before contributing.

What is the RRSP limit 2026 and how is my room calculated?

The RRSP limit 2026 is $33,810. Your room is the lower of that cap or 18% of your 2025 earned income, adjusted for any pension factor. Your exact space appears on your latest Notice of Assessment. Avoid overcontributing to prevent penalties.

How do Canada tax brackets 2026 affect my take-home pay?

The lowest federal rate is 14% for all of 2026, and bracket thresholds rise by 2%. Many workers will see slightly higher net pay. The impact varies by income level and province. Review your payroll settings and adjust savings targets to reflect the updated rates.

What is the basic personal amount 2026 and why does it matter?

The basic personal amount is $16,452 in 2026. This amount of income is not taxed at the federal level. A higher BPA reduces taxes for many Canadians, which frees up cash for savings. You can use the extra room to boost TFSA or RRSP contributions.

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December 31: TFSA 2026 Limit $7,000; RRSP Cap Up, Brackets Shift

ByHuzaifa Zahoor January 1, 2026January 1, 2026

The TFSA contribution limit 2026 remains $7,000, while the RRSP limit 2026 rises to $33,810. For 2026, Canada tax brackets use a 14% lowest federal rate all year, with a 2% indexation bump and a higher $16,452 basic personal amount. These changes shape after-tax cash flow and how we fund accounts in January. Below, we explain what stays the same, what changes, and a simple plan to decide between TFSA and RRSP contributions in Canada.