TFSA contribution limits

What’s the TFSA contribution limit for 2023?

The TFSA contribution limit for 2023 is $6,500.

The TFSA contribution limit may increase from year over year because it’s adjusted to reflect changes in inflation.

How much can you put in a TFSA?

The limit is $6,500 in 2023. But the amount you can save depends on your personal TFSA contribution room.

Your TFSA contribution room starts building in the year you turn 18. You can contribute to a TFSA only for the years you’re a resident of Canada and have a valid Social Insurance Number (SIN).

If you were 18 or older when the Government of Canada first introduced TFSAs (which was in 2009) and you’ve never put money into a TFSA, then your contribution room could be as much as $88,000 (in 2023).

Find out how much money you can contribute to your TFSA through ‘My Account’ on the Canada Revenue Agency (CRA) website.

Can you contribute to a TFSA for past years?

Yes, you can contribute for past years, if you have contribution room available. Your TFSA contribution room accumulates annually. If a contribution isn’t made in a particular year, any unused amount is automatically carried forward and can be used in a future year.

What are the TFSA contribution limits for past years?

What if you’ve never contributed to a TFSA before?

Depending on your age, you may be able to contribute up to $88,000 as of 2023.

What happens if you have unused TFSA contribution room?

Your unused TFSA contribution room is automatically carried forward into future years.

Do you lose TFSA contribution room?

You can’t lose your accumulated contribution room. But you won’t accumulate any additional contribution room if you’ve been a non-resident of Canada for an entire year. (See the CRA’s page on Determining an individual’s residence status.)

What happens if you don’t contribute the full amount each year?

There’s no minimum or maximum amount that you must contribute to your TFSA, annually. You’re limited only by the amount of TFSA contribution room available to you at the beginning of the year. If you contribute less than the annual TFSA contribution limit (which for 2023 is $6,500), the difference between the limit and the amount you contributed will be carried forward to future years.

Example: Let’s say you’ve always contributed the maximum amount to your TFSA every year. However, in 2023, you decide to contribute $2,500 instead of the $6,500 (which is the limit for 2023). In this case, you have $4,000 ($6,500 - $2,500 = $4,000) of contribution room to use in future years.

What happens if you contribute more than your TFSA contribution limit in a year?

The Canada Revenue Agency (CRA) charges a penalty for over-contributions to a TFSA.

What’s the penalty for a TFSA over-contribution?

The Canada Revenue Agency (CRA) will charge a penalty of 1% per month on the amount contributed in excess of your contribution room. This penalty applies until the amount you over-contributed is withdrawn from your TFSA.

How will you know if you’ve over-contributed to your TFSA?

The CRA will notify you if you’ve over-contributed to your TFSA - but it’s up to you to know and monitor your own contribution limits. Remember, you share your contribution limit with all TFSAs you contribute to.

You can find your unused TFSA contribution room by logging into "My Account" on the CRA’s website.

How do you avoid over-contributing to your TFSA?

To avoid TFSA over-contributions:

• know your unused TFSA contribution room at the beginning of each year and
• keep track of your contributions, especially if you have more than one TFSA.