What are the TFSA annual contribution limits?

The Tax-Free Saving Account is a great way to set money aside that grows tax-free during your lifetime. Compared to an RRSP, you do not need to have earned income to contribute to a TFSA. Instead, the amount is based on yearly contribution limits set by the Canadian government. It is important to understand the total amount you can add each year to ensure you don’t over-contribute.

TFSA annual contribution limits

Your annual contribution room is determined by:

The TFSA dollar limit for the current year
Any contribution room you have leftover from previous years
Any withdrawals made from your TFSA in previous years

Canadians can open a TFSA account the year they turn 18. Regardless of whether you do, your contribution limits start accumulating the year you turn 18 or older in 2009, the accumulation started in this first year.