The Canada Revenue Agency (CRA) has announced the new TFSA contribution limit for 2025.
The TFSA program has been in place since 2009 and is a way for residents of Canada 18 and older to set money aside tax-free throughout their lifetime. Contributions to the TFSA are not deductible for income tax purposes.
Any amount that is contributed, or income earned in the account (such as investment income and capital gains) as well as withdrawals are “generally tax free,” states the CRA.
CRA
Every year, the federal government sets the maximum contribution limit for TFSAs.
The 2025 limit is unchanged from 2024 and remains at $7,000.
What does this TFSA limit mean for you?
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If you’re wondering what this contribution limit means for your 2025 savings goals, here’s a rundown.
If you’ve maximized your 2024 TFSA amount, you can contribute another $7,000 in 2025.
For account holders with unused contribution room, that amount carries forward into the next year, allowing you to save more money in the account.
The total limit for someone who has never contributed to a TFSA and was at least 18 when the program started in 2009 has increased from $95,000 in 2024 to $102,000 in 2025.
The CRA notes that the annual room limit is indexed to inflation and rounded to the nearest $500. You can find your personalized TFSA contribution limit information on your MyCRA account.
Keep in mind that penalties apply if you contribute more than your available TFSA contribution room. According to the CRA, you’ll be required to pay a tax of 1% per month on the highest excess amount in your account for each month it remains over the limit.
If you’d like to open a TFSA account going into 2025, simply contact your financial institution, credit union, or insurance company. You’ll need to provide your SIN and date of birth.
You can find out more information about TFSAs on the CRA website.