TFSA Contribution Limit Over The Years (2009-2021)

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by Enoch Omololu

Updated

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The TFSA contribution limit for 2021 is $6,000, staying at the same levels for 2020.

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.

The 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.

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:

YearAnnual TFSA LimitTotal Contribution Room
2009$5,000$5,000
2010$5,000$10,000
2011$5,000$15,000
2012$5,000$20,000
2013$5,500$25,500
2014$5,500$31,000
2015$10,000$41,000
2016$5,500$46,500
2017$5,500$52,000
2018$5,500$57,500
2019$6,000$63,500
2020$6,000$69,500
2021$6,000$75,500

With inflation staying low (1.00% for 2020), the government is keeping the limit at $6,000 for 2021.

If you have been eligible to contribute to the TFSA since its inception, you have now accumulated a total contribution room of $75,500 as of January 1, 2021.

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.

Related Posts:

Learn about how to avoid TFSA penalties resulting from an overcontribution.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. His writing has been featured or quoted in the Toronto Star, The Globe and Mail, MSN Money, Financial Post, Winnipeg Free Press, CPA Canada, Credit Canada, Wealthsimple, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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