TFSA limit Officially Set at $7,000 for 2024

Date

November 24, 2023

Date

November 24, 2023

Date

November 24, 2023

The TFSA Contribution Limit for 2024 has been made official. The Canada Revenue Agency (CRA) confirmed that limit is $7,000 in 2024, up from $6,500 in 2023 and $6,000 in 2022. This now marks two consecutive years of increases on the annual TFSA limit for the first time in the history of the registered account.

Tax Free Savings Account (TFSA) was introduced in 2009 to as a way Canadians 18 years of age or older could 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after tax dollars, but income earned by the amounts contributed as well as any gains inside it are tax-free, even when withdrawn.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 2024 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 Unused TFSA contribution room can be carried forward and any amounts withdrawn in the current year can only be put back in the following year.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 2024 contribution of $7,000 is $500 higher than 2023
  • The total contribution room available in 2024 for someone who has never contributed and has been eligible for the TFSA since its introduction is $95,000.
  • The annual limit is indexed to inflation and rounded to the nearest $500.
  • AAnyone 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

Federal tax bracket thresholds for 2024

The 33.0% tax rate begins at taxable income of over $246,752, up from $235,675 in 2023

The 29.0% tax rate begins at taxable income of over $173,205, up from $165,430 in 2023.

The 26.0% tax rate begins at taxable income of over $111.733, up from $106,717 in 2023.

The 20.5% tax rate begins at taxable income of over $55,867 up from $53,359 in 2023.

Income below $55,867 is taxed at 15.0%.

The basic personal amount (BPA) for 2024 is $15,705, for taxpayers with net income of $173,205 or less. Income levels above $173,205, the BPA is clawed back until it reaches $14,156 for net income of $246,752 (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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