TFSA limit Officially Set at $7,000 for 2025

Date

November 21, 2024

Date

November 21, 2024

Date

November 21, 2024

The TFSA Contribution Limit for 2025 has been made official. The Canada Revenue Agency (CRA) confirmed that the limit is $7,000 in 2025, which is the same annual limit as 2024 and up from $6,500 in 2023. This now brings the cumulative TFSA limit to $102,000 for those who were eligible to contribute since its inception.

The Tax-Free Savings Account (TFSA) was introduced in 2009 as a way for Canadians 18 years of age or older to save and invest money tax-free during their lifetime – either for retirement or for any other purpose. TFSA contributions are made with after tax dollars, but income earned by the amounts contributed as well as any gains inside it are tax-free, even when withdrawn.

The contribution limit is set each year and increases based on inflation. The maximum amount for 2025 has been set at $7,000, reflecting the limit’s index to inflation—rounded to the nearest $500. Unused TFSA contribution room can be carried forward and any amounts withdrawn in the current year can only be put back in the following year.

  • The 2025 contribution of $7,000 is unchanged from 2024
  • The total contribution room available in 2025 for someone who has never contributed and has been eligible for the TFSA since its introduction is $102,000.
  • The annual limit is indexed to inflation and rounded to the nearest $500.
  • Anyone 18 or older is eligible to open a TFSA and contribution room accumulates beginning in the year they turn 18.

TFSA contribution limits dollar amounts by year:

For 2009 -2012$5,000
For 2013 and 2014$5,500
For 2015$10,000
For 2016, 2017, and 2018$5,500
For 2019, 2020, 2021, 2022$6,000
For 2023$6,500
For 2024$7,000
For 2025$7000

Federal tax bracket thresholds for 2025

The 33.0% tax rate begins at taxable income of over $253,414, up from $246,752 in 2024

The 29.0% tax rate begins at taxable income of over $177,882, up from $173,205 in 2024.

The 26.0% tax rate begins at taxable income of over $114,750, up from $111,733 in 2024.

The 20.5% tax rate begins at taxable income of over $57,375 up from $55,867 in 2024.

Income below $57,375 is taxed at 15.0%.

The basic personal amount (BPA) for 2025 is $16,129, for taxpayers with net income of $177,882 or less. Income levels above $177,882, the BPA is clawed back until it reaches $14,538 for net income of $253,414 (taxable income above which the 33% bracket begins).

https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html

https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/adjustment-personal-income-tax-benefit-amounts.html

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