How Much Can I Contribute to My TFSA?

Tax-Free Savings Account (TFSA) contribution room accumulates every year, even if you haven't opened a TFSA. If you are a Canadian resident, your contribution room begins accumulating from 2009 or from the year in which you turned 18. So, if you open a new TFSA in 2024 and have never contributed to a TFSA elsewhere, you would have total available contribution room of $95,000 if you were 18 or older in 2009.

If at any time in the calendar year you are 18 years of age or older and a resident of Canada with a Social Insurance Number, you are eligible to open a TFSA and contribute up to the limits below.

Note that the age of majority is 19 in Newfoundland and Labrador, New Brunswick, Nova Scotia, British Columbia, Northwest Territories, Yukon and Nunavut. Contribution room starts at age 18, however, regardless of your province of residence. So if you're a resident of Newfoundland, you can still contribute the same amount as a resident of Ontario – you just need to wait until age 19 to open the account.

Note that investment income earned in your TFSA and changes in the value of your investments do not affect your TFSA contribution room for current or future years.

Tracking Your TFSA Contributions

It's important to keep track of all your TFSA contributions, in the current year and in past years, so that you don't contribute above your maximum. That's important since over-contributions are subject to a monthly tax of 1 per cent for each month the excess amount stays in your TFSA. There may also be significant penalties on earnings or increases in value attributed to deliberate excess contributions.

• You can check your contribution room with CRA's My Account. Be aware that any contributions made or withdrawn from a TFSA in the prior year may not be reflected in your available current-year contribution room until after the end of February. Any transactions made in the current year will not be included.
• If you've withdrawn from your TFSA this year, a handy formula for checking what your next year's contribution room is:

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

• If you have multiple TFSAs, perhaps at different financial institutions, you might consider transferring in some or all of your assets to your RBC Direct Investing TFSA. This can make it easier to track your contributions and see your performance and holdings any time, at a glance.

To open your TFSA

If a TFSA is right for you, you can open your account here.

The information provided in this article is for general purposes only and does not constitute personal financial or tax advice. Please consult with your own professional advisor to discuss your specific financial and tax needs.

Last updated: December 2023

Next: What Investments Can I Hold in My TFSA?