The Tax-Free Savings Account (TFSA) is a powerful tool that allows Canadian residents to earn investment income tax-free. Anyone 18 or older with a valid Social Insurance Number (SIN) can open and contribute to a TFSA.
Annual Contribution Limits
Your contribution room accumulates every year, even if you do not have an account open. The limits are indexed to inflation and change periodically.
Year Range | Annual Limit |
2009 – 2012 | $5,000 |
2013 – 2014 | $5,500 |
2015 | $10,000 |
2016 – 2018 | $5,500 |
2019 – 2022 | $6,000 |
2023 | $6,500 |
2024 – 2026 | $7,000 |
Total Cumulative Limit (2009–2026): If you were at least 18 in 2009 and have never contributed, your total available room in 2026 is $109,000.
How Withdrawals Affect Your Room
One of the best features of a TFSA is that withdrawals are added back to your contribution room—but not until the following calendar year.
Example: If you withdraw $5,000 in 2025, you cannot put that $5,000 back into the account in 2025 (unless you have unrelated spare room). You must wait until January 1, 2026, at which point that $5,000 is added back to your total limit.
Important Considerations
Multiple Accounts: Your contribution room is the total across all financial institutions. If you have TFSAs at multiple banks, you are responsible for ensuring the combined total stays within your limit.
Over-Contribution Penalty: The CRA charges a penalty of 1% per month on any excess amount in your TFSA.
Tracking Your Room: The most accurate way to check your personal limit is through the CRA My Account portal.