TFSA withdrawals in 2026: tax, room and benefits
Enter your past contributions and what you take out this year: the calculator shows your room today and what comes back on the following January 1.
TFSA room available in 2026
$59,000
In 2027, your 2026 withdrawals come back, plus the 2027 limit, not yet published.
| Limits added up, 2009 to 2026 | $109,000 |
| Minus past contributions | -$50,000 |
| Plus past withdrawals | $0 |
| Room on January 1, 2026 | $59,000 |
| Minus 2026 contributions | $0 |
| Added back on January 1, 2027 | $10,000 |
The CRA figure in My Account leaves out this year’s transactions: your own statements are the reference.
| Year | Limit | Running total |
|---|---|---|
| 2009 | $5,000 | $5,000 |
| 2010 | $5,000 | $10,000 |
| 2011 | $5,000 | $15,000 |
| 2012 | $5,000 | $20,000 |
| 2013 | $5,500 | $25,500 |
| 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 | $5,500 | $46,500 |
| 2017 | $5,500 | $52,000 |
| 2018 | $5,500 | $57,500 |
| 2019 | $6,000 | $63,500 |
| 2020 | $6,000 | $69,500 |
| 2021 | $6,000 | $75,500 |
| 2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
| 2025 | $7,000 | $102,000 |
| 2026 | $7,000 | $109,000 |
Prepared by Radif Partners · How we calculate · limits and tax tables read on canada.ca · estimates only, not a notice of assessment
A TFSA withdrawal is never taxed: no withholding at source and nothing to include on your tax return. It does not create room right away; it is added to your room on January 1 of the following year. Someone born in 1990 who has put $50,000 into the account over the years and takes out $10,000 in 2026 keeps $59,000 of room for 2026, then gets $10,000 back on January 1, 2027, on top of the 2027 limit, which is not published yet. The withdrawal has no effect on the Old Age Security pension, the Guaranteed Income Supplement, Employment Insurance, the Canada child benefit or the GST/HST credit. The one trap is putting the money back: doing it in the same year when your room is used up creates an excess taxed at 1% a month. The same withdrawal from an RRSP would have $2,000 withheld outside Quebec and would be added to taxable income.
No tax, no withholding
The Canada Revenue Agency is clear: you can generally withdraw any amount from your TFSA, at any time, for any reason, with no tax consequences. The institution withholds nothing and there is nothing to enter on your tax return. That covers the money you put in as well as the interest, dividends and gains built up in the account. The only limits come from the type of investment held, whose redemption terms vary from one institution to another.
Room comes back the following January 1
A withdrawal does not reduce the contributions already made in the year and does not free up room on the spot. The amount withdrawn, other than a qualifying transfer or a specified distribution, is added to your room at the start of the next year. Take the calculator's example: $50,000 already contributed and a $10,000 withdrawal in 2026.
| When | What happens | Room available |
|---|---|---|
| January 1, 2026 | Limits added up, minus contributions | $59,000 |
| During 2026 | $10,000 withdrawn | $59,000 (unchanged) |
| January 1, 2027 | Withdrawal added back, plus the 2027 limit | $69,000 plus the 2027 limit, not yet published |
What comes back is the amount withdrawn, not what you originally put in. If an investment has grown, withdrawing all of it gives you back more room than you used. A loss is not a withdrawal: someone who invested $8,000 and takes out the $5,000 that is left only gets $5,000 of room back the next year. Nor can the loss be claimed as a capital loss.
The date of the withdrawal therefore matters. A withdrawal made in December turns back into room a few days later, on January 1. The same withdrawal made on January 2 waits almost a year. If you plan to take money out around the turn of the year and put it back later, withdrawing before December 31 shortens the wait. The amount is the same either way; only the date it becomes usable again changes.
No effect on benefits
Because TFSA income and withdrawals stay off your tax return, they do not enter income-tested calculations. The guide lists the Old Age Security pension, the Guaranteed Income Supplement and Employment Insurance, then the Canada child benefit, the Canada workers benefit, the GST/HST credit and the age amount. The contrast with an RRSP is sharp. For a single person, the GIS stops once annual income reaches $23,112, according to the Government of Canada's eligibility page, and every RRSP or RRIF withdrawal counts in that income. Higher up, the OAS pension starts being clawed back above $95,323 of net income in 2026. A TFSA withdrawal moves none of these thresholds.
| TFSA withdrawal | RRSP withdrawal | |
|---|---|---|
| Tax on the amount | None | Added to taxable income |
| Withholding on $10,000, outside Quebec | None | 20%, or $2,000 |
| Contribution room | Added back the next January 1 | Lost |
| OAS, GIS, Employment Insurance | No effect | Counts as income |
| CCB, GST/HST credit | No effect | Raises family net income |
The same $10,000 taken out of an RRSP
Actual tax on the withdrawal
$2,602
| Federal withholding | $1,000 |
| Total tax due | $2,602 |
| Average rate on the withdrawal | 26.0% |
The re-contribution trap
Most excess amounts start here. Someone who has already used up their room takes out $10,000 in the spring, then puts it back in July, thinking they are just "returning" what they took. To the Agency, that deposit is a new contribution, and the $10,000 withdrawn only turns back into room in January. Left until year end, the excess costs $600. The rule of thumb: before putting money back in the same year, check that you still have unused room; if not, wait for January 1. The TFSA over-contribution page explains how to fix an excess that already exists.
Switching institutions without withdrawing
To move a TFSA from one institution to another, ask for a direct transfer. It is neither a withdrawal nor a contribution and leaves your room alone. If you take the cash out yourself and deposit it elsewhere, the deposit counts as an ordinary contribution, with the same excess risk as above.
Withdrawals by a non-resident
After leaving Canada, a withdrawal is still not taxed in Canada. It is added to your room the following year, but you can only use that room once you are a resident of Canada for tax purposes again. The other rules for people abroad are on the TFSA for non-residents page.