Whether you're saving for a rainy day, or a boat to take out on a sunny day, you'll probably want to have a Tax-Free Savings Account (TFSA), an investment account that can hold stocks, exchange-traded funds (ETFs), bonds, or cash savings. They have no withdrawal rules and no tax consequences when you take money out of the account. Since the money you put into your TFSA has already been taxed, the returns that the account earns are, as the name implies, tax-free. It’s a great deal because investing in a tax-sheltered account like a TFSA can lead to a significant increase in wealth over time compared to investing in a taxable account. To see what it could mean for you, check out this calculator.
But, of course, it has limits to how much you can put into the account each year. If you already have a TFSA you’ve been contributing to, the most you can add in 2024 is $7,000.
Not sure if you’d be better off with a TFSA or a Registered Retirement Savings Plan (RRSP)? Check out our handy guide to know which one is right for your situation.
If you’ve yet to open a TFSA — or if you haven't maxed out your contributions in past years — the total amount you can put into your TFSA this year could be much bigger than that $7,000 limit we mentioned. How? The maximum overall money you can deposit in your TFSA is cumulative. That means it's the sum of all the allowed maximum annual contributions since the year you turned 18 years old, as far back as 2009. (If you turned 18 before 2009, haven’t opened a TFSA, and have a valid social insurance number, you can contribute up to $95,000 in 2024 to catch up.)
If you turned 18 in a year after 2009, add together the maximum contributions from each year from the year you turned 18 up through 2024. In case you don’t happen to already know the max contributions from the past 15 years, don’t worry: we have a table of all of them — along with loads more information, explanations, and potential pitfalls to be aware of — below.
What are the past TFSA contribution limits?
If you’ve yet to open a TFSA — lucky you! That means you’ve probably accrued a ton of contribution room with each of the years you missed. And if you haven't contributed the maximum in the past, there's time to catch up. Here’s the TFSA contribution limits for every single year since the program started:
Year | TFSA Limit |
|---|---|
| 2024 | $7,000 |
| 2023 | $6,500 |
| 2022 | $6,000 |
| 2021 | $6,000 |
| 2020 | $6,000 |
| 2019 | $6,000 |
| 2018 | $5,500 |
| 2017 | $5,500 |
| 2016 | $5,500 |
| 2015 | $10,000 |
| 2014 | $5,500 |
| 2013 | $5,500 |
| 2012 | $5,000 |
| 2011 | $5,000 |
| 2010 | $5,000 |
| 2009 | $5,000 |
How much can I contribute to my TFSA?
If you’ve always contributed the maximum amount into your TFSA, the most you can put in is $7,000 for 2024. But if you never contributed before and turned 18 in 2009 or earlier, you may contribute up to $95,000. And if you’ve deposited some money over the years, just subtract that number from $95,000 to arrive at your maximum contribution.
How can I calculate my TFSA limit?
We’ll give you two ways to figure out your annual TFSA dollar limit — a shorthand way, and an official way.
Shorthand, back of the napkins way: if you turned 18 after 2009, check out the maximum annual contribution limits in the table above. Add together the maximum contributions from the year you turned 18 every year through 2024. (If you took a withdrawal from your TFSA in the previous year, add that amount as well.) Then, subtract the sum of all prior years’ contributions from $95,000: this is your current maximum contribution amount.
Officially Canada Revenue Agency (CRA)-verified way: if you don’t trust your own math, you can log into your CRA Account and find how much you’re able to contribute. Here’s some more detailed information on how to do that:
Go to the CRA My Account login.
Log in with your preferred method. If you’ve set up your bank as a sign-in partner, this is the simplest way to access your CRA account.
On the Overview page, scroll down to the "Savings and pension plans" section. Alternatively, you can click on "Savings and pension plans" from the left navigation bar.
Look for "2024 TFSA contribution room as of January 1, 2024." This value is your most accurate calculation of your contribution room since January 1. Just remember: any contributions or withdrawals made this year will not be included in this number.
Alternatively, call the Tax Information Phone Service at 1-800-267-6999, but first make sure you’ve collected all the authentication documents listed here.
How does a TFSA withdrawal work?
One confusing aspect of TFSAs is how TFSA withdrawals affect how much you can contribute to your TFSA. A withdrawal will provide you with contribution room in the next year, not the current one. So, hypothetically, if every year you had contributed the maximum to your TFSA and then you withdrew $1,000 in 2024, you’d have to wait until January 1, 2025, to get that $1,000 contribution room back. Even if you were just hoping to replace your withdrawal, a $1,000 deposit into your TFSA anytime in 2024 (assuming you'd already contributed the max for the year) would be considered an over-contribution and subject you to CRA fines.
What's the penalty for exceeding the TFSA limit?
The CRA may get a bad rap, but it’s not trying to get you to over-contribute to your TFSA in order to collect a few extra dollars in fees. In fact, the agency will normally send a letter in the first instance of an over-contribution and allow you to withdraw the excess amount before they would hit you with a penalty. Thoughtful, huh?
But if you ignore the warning, and any over-contribution stays in the account, the CRA will then charge 1% a month of your over-contribution amount until you remove it. For example, if you over-contribute by $2,000, you'll pay $20 a month in fines until you withdraw the excess.
