Personal Finance

TFSA Contribution Limit Officially Increased $500 For 2024

The official TFSA contribution limit for the year 2024 has been disclosed, set at $7,000, reflecting an increase from $6,500 in 2023 and $6,000 in 2022.

Following the Canada Revenue Agency’s Thursday announcement regarding the TFSA limit, individuals who have been eligible for TFSA contributions since its inception in 2009 and have not contributed yet will have a total contribution room of $95,000 in 2024.

The annual TFSA dollar limit is adjusted for inflation and rounded to the nearest $500. The CRA’s indexation increase for 2024 is 4.7%, down from 6.3% in 2023.

For clients who have made withdrawals from TFSAs, their realized gains and losses from these withdrawals are considered in determining their TFSA room using the formula:

TFSA Contribution Limit Officially Increased $500 For 2024

Unused TFSA contribution room to date + total withdrawal made in this year + next year’s TFSA dollar limit = TFSA contribution room at the beginning of next year

The TFSA dollar limits have evolved over the years as follows:

  • For 2009, 2010, 2011, and 2012: $5,000
  • For 2013 and 2014: $5,500
  • For 2015: $10,000
  • For 2016, 2017, and 2018: $5,500
  • For 2019, 2020, 2021, and 2022: $6,000
  • For 2023: $6,500
  • For 2024: $7,000

Individuals aged 18 or older with a valid social insurance number are eligible to open a TFSA, with contribution room accumulating from the year they turn 18.

In addition to the TFSA updates, federal tax bracket thresholds for 2024 have been adjusted upwards, with rates beginning at higher taxable income levels compared to 2023. The basic personal amount, subject to clawback at higher income levels, is set at $15,705 for taxpayers with a net income of $173,205 or less in 2024.