What is the TFSA limit 2026 and who qualifies?

The TFSA limit 2026 is $7,000. Room accumulates for Canadian residents aged 18 or older and carries forward if unused. Newcomers start earning room once they become residents. All growth and withdrawals are tax free, and there is no impact on federal income-tested benefits.

What is the RRSP contribution limit 2026 and how is it calculated?

The RRSP contribution limit 2026 is $33,810, but your personal room is the lesser of 18% of last year’s earned income or the annual cap, minus any pension adjustment. Unused room carries forward. Check your CRA Notice of Assessment for exact space before contributing.

Should I use TFSA or RRSP first in 2026?

If your current tax rate is low, TFSA often comes first. If your rate is high now and lower later, RRSP may deliver more value. Many Canadians split contributions, then direct the RRSP refund into TFSA. Compare today’s rate to your expected retirement rate before deciding.

What penalties apply if I over-contribute?

TFSA excess amounts face a 1% per month tax on the highest excess balance each month. RRSP over-contributions above a $2,000 lifetime buffer are also taxed at 1% per month. Track deposits across institutions and confirm room on CRA before funding to avoid costly charges.

Global Market Insights

January 03: TFSA 2026 room $7,000; RRSP limit lifted to $33,810

ByDanny Kontos January 4, 2026January 4, 2026

Canadians start 2026 with the tfsa contribution room 2026 set at $7,000, pushing lifetime space for non-contributors to $109,000. The RRSP contribution limit 2026 climbs to $33,810, still capped at 18% of earned income. With Canada tax brackets 2026 indexed and the bottom federal rate at 14%, your mix between TFSA and RRSP can change your after-tax returns. We break down what changed, who should prioritize which account, and practical steps to fund both accounts efficiently this year.