Size of TFSA Contribution Limit Rises. Again.
Finance Canada has announced that Canadians will see an increase in their tax-free savings account (TFSA) contribution limits in 2024. According to a statement provided to Global News on Friday, the TFSA contribution limits will be raised to $7,000 next year. This represents a notable increase from the $6,500 limit set in 2023 and marks the first time the Canada Revenue Agency has consecutively raised the contribution limit since the TFSA’s inception in 2009. In the years between 2019 and 2022, the annual increase was capped at $6,000.
The 2024 increase is the second-largest in the history of TFSA contributions, with the largest being a one-time $10,000 increase in contribution space in 2015 under the Conservative government. Since then, TFSA contribution limits have been calculated based on a $5,000 base indexed to inflation and rounded to the nearest $500.
As of 2024, the total TFSA contribution limit for individuals born before 1991 will be $95,000. For those born after this date, TFSA contribution limits vary, as TFSAs become accessible to individuals aged 18 and older, with contribution limits expanding annually thereafter.
It’s important to note that unused contribution room carries over from year to year. Individuals can check their personal TFSA space through their CRA MyAccount.