How to Max Out Your TFSA in 2026

Maxing out your Tax-Free Savings Account (TFSA) in 2026 is a great way to reward yourself twice. First, your gains and income stay tax-free. Second, once you fill that room, time does the heavy lifting without the Canada Revenue Agency (CRA) taking a cut. The CRA set the TFSA dollar limit for 2026 at $7,000, and if you have been eligible since 2009, never contributed, and lived in Canada the whole time, the cumulative room rises to $109,000 in 2026! But if you’re behind, there’s a strong dividend stock to get you started.

NA

National Bank of Canada (TSX: NA) looks like a “make the most of your room” kind of dividend stock as it blends steady banking with higher-growth fee businesses. It runs personal and commercial banking, wealth management, and capital markets, plus a U.S. specialty finance segment that adds diversification. It also sits in that sweet spot where it feels big enough to be durable but focused enough to move the needle with smart execution.

The dividend stock delivered a strong run lately, which tells you investors have warmed back up to Canadian financials. Shares of the dividend stock have traded up 31% in the last year alone. That is a big spread for a bank, and it shows you how quickly sentiment can shift when earnings stay resilient, and the market starts to relax.

That recent climb also has a straightforward explanation. National Bank has leaned hard into wealth and capital markets, which can shine when activity picks up. Capital markets profit rose 41% year over year in the latest quarter, and wealth management revenues rose 18%. When those fee businesses run hot, the dividend stock often gets treated less like a sleepy lender and more like a growing Canadian financial.

Into earnings

Now for the earnings numbers that make investors pay attention. In the fourth quarter (Q4) of 2025, National Bank reported total bank revenues of $3.7 billion and net income of $1.06 billion. Diluted earnings per share (EPS) came in at $2.57, while adjusted diluted EPS came in at $2.82. It also reported a common equity tier-one ratio of 13.75%, which gives it a solid cushion if the economy throws a few surprises.

On valuation, the dividend stock still looks fairly priced for a high-quality bank that keeps executing. The dividend stock currently trades at 17.2 times earnings, offering up a 2.8% dividend yield as well. That dividend yield will not win a yield contest, but it offers a steady base while you aim for long-term growth.

The outlook into 2026 has a clear catalyst: integration and synergies from Canadian Western Bank. In its Q4 2025 materials, National Bank targeted full cost and funding synergies of $270 million, and said it expects to hit that by the end of fiscal 2026, which is earlier than the original plan. Commentary around the quarter also pointed to 2026 EPS growth guidance in the 5% to 10% range, and this keeps the story pointed in the right direction, even if the economy stays bumpy.

Bottom line

That’s why National Bank can be a great way to make the most of the maximum TFSA amount Canadians could have in 2026. When your TFSA room tops out, you want holdings that can compound without constant babysitting. National Bank has a track record of strong profitability, a growing fee mix, and a dividend that you can reinvest tax-free. Right now, here’s what that dividend stock could bring in from a $7,000 investment.

The main risk is the usual bank risk: a weaker economy can lift credit losses and hit sentiment fast. Still, if you want a Canadian financial that can help turn TFSA room into long-term momentum, NA has a strong case.