How much can you contribute to a TFSA?
Your Tax-Free Savings Account (TFSA) can be a powerful savings or investment account, allowing for tax-free gains. A TFSA can be used for a variety of different savings goals with the freedom to withdraw at any time during the year, tax-free. The amount of money you can contribute to a TFSA is limited each year, and if you do not contribute in the calendar year, your contribution room rolls over to the next calendar year.
One of the most frequently asked questions surrounding TFSAs is how much one person can contribute. In general, TFSA contribution room is made up of the total of the following:
- Your TFSA dollar limit
- Any unused TFSA contribution room from previous years
- Any withdrawals made from the TFSA in the previous year
An individual will not accumulate TFSA contribution room for any year during which the individual is a non-resident of Canada throughout the entire year.
If you withdraw from your TFSA, don’t worry, you don’t lose your contribution room. You can recontribute amounts you’ve withdrawn on or after January 1 of the following year or years, and your contribution room carries forward indefinitely.
Assuming you were at least 18 years old in 2009 when TFSAs were introduced, you have been accumulating contribution room regardless of whether you have opened a TFSA or not. Your contribution limit grows every year, subject to the annual TFSA contribution limit set by the federal government. If you turned 18 after 2009, your contribution room would start the year you turned 18 and accumulates each year after that.
Below is a handy chart you can use to calculate your own contribution limit. If you’ve made some contributions, some withdrawals or perhaps hold TFSAs at more than one financial institution, you can check your exact contribution limit by logging on to your CRA account.
| Year | Annual contribution limit | TFSA cumulative limit |
|---|---|---|
| 2023 | $6,500 | $88,000 |
| 2022 | $6,000 | $81,500 |
| 2021 | $6,000 | $75,500 |
| 2020 | $6,000 | $69,500 |
| 2019 | $6,000 | $63,500 |
| 2018 | $5,500 | $57,500 |
| 2017 | $5,500 | $52,000 |
| 2016 | $5,500 | $46,500 |
| 2015 | $10,000 | $41,000 |
| 2014 | $5,500 | $31,000 |
| 2013 | $5,500 | $25,500 |
| 2012 | $5,000 | $20,000 |
| 2011 | $5,000 | $15,000 |
| 2010 | $5,000 | $10,000 |
| 2009 | $5,000 | $5000 |
Ready to learn more or start investing with your very own TFSA? We can help with that.
