Updated For 2019
The TFSA contribution limit for 2019 is $6,000 (it was $5,500 in 2018). The Tax-Free Savings Account (TFSA) was first introduced in 2009, and has gained popularity over the years as a tool for savings or investing in general. Contribution room for the TFSA is indexed to inflation and since its inception has been updated just thrice. A short-lived increase to $10,000 in 2015 by the conservative government was reversed in 2016 by the new liberal government.
One of the attractions of the Tax-Free Savings Account is that investment income or returns earned are tax-free. For more details on the basics of the TFSA including eligibility, withdrawals, excess contribution penalties and investment ideas, read my TFSA overview here.
December 24, 2018 Update:
The TFSA limit for 2019 has been pegged at $6,600.
TFSA Contribution Room Over The Years
Starting in 2009, Canadian residents who are at least 18 years of age and have a Social Insurance Number can participate in the TFSA. Contribution room over the years are as follows:
With inflation staying low (1.4% for 2016), the government is keeping the limit at $5,500 for 2017. Therefore, if you have met the eligibility criteria since inception and have never opened a TFSA account, your total contribution room will be $52,000 on January 1, 2017.
Update for 2019: If you have been eligible to contribute to the TFSA since its inception, you will have accumulated a total contribution room of $63,500 by January 1, 2019.
If you have been contributing to a TFSA and are not sure of your current contribution room balance, you can find that information on Canada Revenue’s My Account or call them directly on 1-800-267-6999.