How the 2027 limit is calculated
Nobody decides the TFSA limit each year. The Income Tax Act takes the original $5,000 from 2009, indexes it to inflation with the same factor as the federal tax brackets, and rounds the result to the nearest $500. The unrounded amount carries over from year to year; only the published limit is rounded. That's why the limit sat at $7,000 for three years while inflation kept adding to the amount underneath it.
- Average consumer price index, October 2025 to September 2026: 167.525. The same average a year earlier: 163.275.
- 167.525 ÷ 163.275 = 1.026, an indexation factor of 2.6%.
- 2026's unrounded amount, $7,184.92, × 1.026 = $7,371.72.
- Rounded to the nearest $500: $7,500.
It wasn't close. Any factor of 1.0% or more would have produced $7,500. September's CPI was the last of the 24 months the formula uses, so the figure won't move. The CRA's announcement makes it official, and only a change to the law could change it, as in 2015, when Parliament set that year's limit at $10,000.
TFSA limits by year, 2009 to 2027
| Year | Indexation | Amount before rounding | Limit |
|---|---|---|---|
| 2009 | — | $5,000.00 | $5,000 |
| 2010 | 0.6% | $5,030.00 | $5,000 |
| 2011 | 1.4% | $5,100.42 | $5,000 |
| 2012 | 2.8% | $5,243.23 | $5,000 |
| 2013 | 2.0% | $5,348.10 | $5,500 |
| 2014 | 0.9% | $5,396.23 | $5,500 |
| 2015 | 1.7% | $5,487.97 | $10,000 (set by law) |
| 2016 | 1.3% | $5,559.31 | $5,500 |
| 2017 | 1.4% | $5,637.14 | $5,500 |
| 2018 | 1.5% | $5,721.70 | $5,500 |
| 2019 | 2.2% | $5,847.57 | $6,000 |
| 2020 | 1.9% | $5,958.68 | $6,000 |
| 2021 | 1.0% | $6,018.26 | $6,000 |
| 2022 | 2.4% | $6,162.70 | $6,000 |
| 2023 | 6.3% | $6,550.95 | $6,500 |
| 2024 | 4.7% | $6,858.85 | $7,000 |
| 2025 | 2.7% | $7,044.04 | $7,000 |
| 2026 | 2.0% | $7,184.92 | $7,000 |
| 2027 | 2.6% | $7,371.72 | $7,500 (calculated) |
Total TFSA room in 2027, by birth year
Room starts in the later of the year you turned 18 and the year you became a resident of Canada, never before 2009. This is the room on January 1, 2027 for someone who has lived in Canada since then and never contributed. Take off what you've put in, and add back what you took out before 2027.
| Born in | Room on January 1, 2027 |
|---|---|
| 1991 or earlier | $116,500 |
| 1992 | $111,500 |
| 1993 | $106,500 |
| 1994 | $101,500 |
| 1995 | $96,500 |
| 1996 | $91,000 |
| 1997 | $85,500 |
| 1998 | $75,500 |
| 1999 | $70,000 |
| 2000 | $64,500 |
| 2001 | $59,000 |
| 2002 | $53,000 |
| 2003 | $47,000 |
| 2004 | $41,000 |
| 2005 | $35,000 |
| 2006 | $28,500 |
| 2007 | $21,500 |
| 2008 | $14,500 |
| 2009 | $7,500 |
Moved to Canada later? The TFSA calculator takes your residency year.
What changes on January 1, 2027
- $7,500 of new room is added to whatever you carry forward.
- Anything you withdraw in 2026 comes back on January 1, 2027, not before. Putting it back in 2026 uses room you may not have. See the year-end deadlines for when a December withdrawal is better than a January one.
- An over-contribution is taxed at 1% a month on the highest excess in each month, until it's withdrawn.
- CRA My Account won't show 2026's contributions until spring. How to check your room against your own records.
Questions
What is the TFSA limit for 2027?
$7,500. The Income Tax Act indexes the limit to inflation, and the 2.6% indexation for 2027 takes it from $7,000 to $7,500. The CRA usually confirms the figure in late November.
What is the total TFSA contribution room in 2027?
$116,500 for someone who has been 18 or older and living in Canada since 2009 and has never contributed. Anyone who became eligible later adds up the limits from their own first year.
Why is it $7,500 and not $7,371.72?
The law rounds the indexed amount to the nearest $500. The unrounded $7,371.72 isn't lost: it is what 2028's inflation is applied to.
When does the CRA announce the 2027 TFSA limit?
In November, with the year's other indexed amounts. The 2026 figures appeared on the CRA's indexation page between November 21 and 25, 2025. Statistics Canada's September CPI, released October 19, 2026, already fixes the arithmetic.
I turn 18 in 2027. How much TFSA room will I have?
$7,500 on January 1, 2027, if you live in Canada and have a social insurance number. Where the age of majority is 19, you can't open a TFSA until you turn 19, but the room from the year you turned 18 carries forward.
