Size of TFSA contribution limit rises for 2nd year in a row

Canadians will again be able to put more into their tax-free savings accounts in 2024, according to Finance Canada.

The department confirmed in a statement to Global News on Friday the TFSA contribution limits are being raised to $7,000 next year.

That’s up from an increase of $6,500 in 2023, and marks the first time the Canada Revenue Agency has raised the size of contribution limit increase in back-to-back years since its inception in 2009. From 2019 to 2022, the increase was capped at $6,000 annually.

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The 2024 increase marks the second largest of all-time, with a one-time $10,000 bump to contribution space in 2015 under the Conservative government of the day.

After that point, TFSA contribution limits have been calculated on a base of $5,000 indexed to inflation, rounded to the nearest $500.

The total TFSA contribution limit for anyone born before 1991 will be $95,000 as of 2024. That amount varies for those born after that date, as TFSAs are open to those aged 18 and older and contribution limits are expanded annually after that point.

Unused contribution room rolls over year-to-year, as well. Individuals can check their personal TFSA space on their CRA MyAccount.

2:13 What you might not know about your TFSA