The new year brings some notable increases in savings and pension plan limits from the Canada Revenue Agency (CRA) – and a couple notable freezes.
Registered Retirement Savings Plan (RRSP)
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The RRSP contribution limit for 2026 has increased to $33,810 from $32,490 in 2025.
This amount is calculated as 18 per cent of your previous year’s income up to the maximum, plus any unused contribution room carried forward.
RRSPs permit investments to grow tax-free until funds are withdrawn in retirement,ideally at a low marginal rate.
You can find your specific limit on your Notice of Assessment or through the CRA’s My Account.
Exceeding the limit can result in a penalty.
Tax-Free Savings account (TFSA)
As of January 1, adults in Canada can add another $7,000 in contribution space to their Tax-Free Savings accounts (TFSAs).
This aligns with the $7,000 expansion each year for the past two years, making the total contribution limit for eligible investors who have never contributed to their TFSA as its introduction in 2009 $109,000.
Eligible investments held in a TFSA can grow tax-free and be withdrawn at any time. The total contribution limit could be much higher than $109,000 for TFSA investors who have consistently contributed as 2009.
understanding Your TFSA Limit
It’s crucial to track your TFSA contributions to avoid over-contribution penalties. The CRA provides tools and resources to help you determine your available contribution room.
Pension Plan limits
The maximum pension adjustment (MPA) remains frozen at $164,160 for 2026. This limit applies to defined benefit pension plans.
The maximum amount you can contribute to a Defined Contribution Pension Plan also remains unchanged at $33,810.
Key Takeaways
- RRSP Limit (2026): $33,810
- TFSA Limit (2026): $109,000 (for those who have never contributed)
- TFSA Annual Contribution (2026): $7,000
- MPA (2026): $164,160 (frozen)
- defined Contribution Pension Plan Limit (2026): $33,810 (frozen)
Staying informed about these changes can definitely help you maximize your savings and plan effectively for your financial future. Consult the CRA website or a financial advisor for personalized guidance.
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