Canadian savers are now aware of the additional room they’ll have in their Tax-Free Savings Accounts (TFSA) for the upcoming year. The Canada Revenue Agency (CRA) has confirmed that the TFSA contribution limit for 2025 will be $7,000, aligning with the second-largest limit ever seen in 2024.
Understanding the TFSA Contribution Limit
The TFSA is a tax-advantaged savings vehicle that allows Canadians to contribute and grow investments without paying taxes on any withdrawals. Contribution room begins to accumulate each year after an individual turns 18, and is typically based on a starting amount of $5,000, adjusted annually for inflation. The contribution limit is rounded to the nearest $500.
2025 TFSA Contribution Limit: $7,000
For 2025, the TFSA contribution limit will be set at $7,000. While inflation has continued to rise in recent years, the pace of inflation has slowed significantly compared to the previous year, resulting in a steady increase in the contribution room.
The CRA Is Monitoring TFSA Holders: Key Red Flags to Watch Out For
Average TFSA Balance for Canadians at Age 64
3 Common CRA Red Flags for Large TFSA Balances: Mistakes to Watch Out For
2025 CRA Updates: New Tax Brackets, CPP, RRSP, and TFSA Contribution Limits.
Historic Contribution Limit Increases
The largest increase in TFSA contribution room came in 2015, when the Conservative government introduced a one-time increase to $10,000. As of 2025, the total contribution room for individuals born before 1991 will reach $102,000.
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