Your annual contribution limit depends on your age and the year
The amount you can contribute to a Tax-Free Savings Account (TFSA) changes each year and depends on whether you were 18 or older on January 1 of that year. The Canada Revenue Agency (CRA) sets the limit each January, and it stays the same for the full calendar year. For 2024, the annual limit is $7,000. For 2023, it was $6,500. For 2022 and 2021, it was $6,000.
You do not have to contribute the full amount. You can put in less, or nothing at all in a given year. Any unused room carries forward to future years, so if you contribute $3,000 one year when the limit is $7,000, you have $4,000 of unused room to use later.
The limit applies to you as an individual, not to your household. If you are married or in a common-law partnership, your spouse has their own separate limit based on their own age and contribution history.
Key Takeaways
- The 2024 annual contribution limit is $7,000, and it increases most years based on inflation, rounded to the nearest $500.
- You must be 18 or older on January 1 of the year to have contribution room for that year.
- Unused contribution room carries forward indefinitely, so you can catch up in future years without penalty.
- The CRA tracks your lifetime contribution room, and exceeding it triggers a 1% tax per month on the overage.
- Withdrawals do not reduce your lifetime room — the amount you withdraw becomes available to contribute again the following year.
How the CRA tracks your contribution room
The CRA maintains a running total of your TFSA contribution room. This includes all the room you have ever earned since 2009 (when TFSAs began), minus all the contributions you have ever made. You can check your current room by logging into My Account on the CRA website, calling the CRA at 1-800-959-8281, or visiting a tax services office in person.
Your Notice of Assessment, which you receive after filing your tax return each year, also shows your TFSA contribution room as of the end of that tax year. The room listed is what you have available to contribute in the following calendar year.
If you have made contributions in previous years and then withdrawn money, the withdrawal does not erase the contribution room you used. Instead, that room becomes available again on January 1 of the following year. For example, if you contributed $5,000 in 2023 and withdrew $3,000 in 2024, you still used $5,000 of your 2023 room. On January 1, 2025, you will have the $3,000 you withdrew available to contribute again, plus your new 2025 room.
What happens if you contribute more than your limit
Contributing more than your available room is called an overcontribution. The CRA charges a tax of 1% per month on the amount you have overcontributed. This tax applies for each month the overcontribution exists, even if you correct it partway through the year.
If you overcontribute by $1,000 and leave it in the account for six months before withdrawing it, you owe 6% in tax (1% × 6 months). The tax is calculated on the overcontribution amount, not on the earnings inside the account. You report the tax owing on your tax return for that year.
Overcontributions can happen by accident — for example, if you misread your available room, or if you and a financial institution both contribute to the account in the same month. If you discover an overcontribution, withdraw the excess amount as soon as possible to stop the tax from accumulating. The CRA may also notify you if they detect an overcontribution when processing your tax return.
How contribution limits have changed since 2009
The TFSA contribution limit is indexed to inflation and rounded to the nearest $500. This means it does not change every year — it only increases when inflation pushes it up by at least $500. The limit started at $5,000 in 2009 and has moved as follows:
| Year | Annual Limit |
|---|---|
| 2009–2012 | $5,000 |
| 2013–2014 | $5,500 |
| 2015–2017 | $10,000 |
| 2018–2023 | $6,000 to $6,500 |
| 2024–present | $7,000 |
The limit jumped to $10,000 in 2015 and then returned to $5,500 in 2018. The current $7,000 limit took effect on January 1, 2024. The CRA announces any change to the limit in November of the previous year, so you have advance notice before the new year begins.
Contribution room if you were not a Canadian resident for the full year
You only earn TFSA contribution room for years in which you were a Canadian resident on December 31. If you immigrated to Canada partway through a year, you do not earn room for that year. Your room begins accumulating on January 1 of the first full year you are a resident.
If you emigrated from Canada, you stop earning new room after the year you leave. Any room you earned before leaving remains yours, and you can still contribute to an existing TFSA if you return to Canada as a resident. However, any growth in the account while you were not a resident may be subject to tax, depending on your country of residence and any tax treaties in place.
If you are a temporary resident (such as on a work or study permit), you do not earn TFSA room until you become a permanent resident or Canadian citizen.
Spousal TFSAs and contribution room
A spousal TFSA is an account registered in your spouse's name, but funded with your money. You contribute to the account, but your spouse owns it and controls the withdrawals. Each spouse has their own separate contribution room based on their own age and residency history.
When you contribute to a spousal TFSA, the contribution counts against your own contribution room, not your spouse's. Your spouse's room remains untouched and available for them to contribute their own money to their own TFSA or spousal account if they wish. This structure can be useful for income splitting in retirement, but it does not increase the total amount either of you can contribute.
Frequently Asked Questions
Can I catch up on missed contributions from previous years?
Yes. Any year you did not contribute the full amount, that unused room carries forward. You can contribute more than the current year's limit if you have accumulated room from previous years. Check your Notice of Assessment or My Account to see your total available room before you contribute.
What if I turned 18 partway through the year?
You earn contribution room only for years in which you were 18 or older on January 1. If you turned 18 on June 15, you do not earn room for that year. Your first year of room is January 1 of the following year, when you are already 18.
Do investment gains inside my TFSA count toward my contribution limit?
No. Only money you actually put into the account counts as a contribution. Any interest, dividends, or investment growth inside the TFSA does not use up your contribution room and is not taxed when you withdraw it.
What if I contributed too much by mistake and the CRA charged me the overcontribution tax?
Withdraw the excess amount immediately to stop the tax from accumulating further. Report the tax owing on your tax return. You can request the CRA waive the tax if the overcontribution was unintentional and you correct it promptly, though this is not may provide.
Does my TFSA contribution room change if I move to a different province?
No. TFSA rules are federal, not provincial. Your contribution room and limits stay the same no matter where you live in Canada.