The Government of Canada has announced new contribution limits for registered accounts, including the Tax-Free Savings Account (TFSA). For 2025, the contribution limit will be the same as in 2024, i.e. $7,000. This means that TFSA contribution room in 2025 will exceed $100,000 for the first time, for a Canadian who was 18 or older in 2009. That said, do you know how to invest in a TFSA? It’s not just a savings account.
Launched in 2009, the TFSA is a savings account that allows Canadians to save money tax-free. Unlike RRSPs and FHSA,TFSA contributions are not tax-deductible. However, returns and withdrawals are tax-free.
The TFSA is not an investment or a financial product. Rather, it’s an account in which you can invest. While many Canadians limit themselves to savings products, you can invest the funds deposited in your TFSA in the stock market. In particular, you can invest in stocks and ETFs using an online broker such as Questrade, Qtrade or Wealthsimple.
The TFSA contribution limit for 2025 was recently announced. It will be the same as in 2024, i.e. $7,000. You will therefore be able to contribute an additional $7,000 to your TFSA as of January 1, 2025.
With this new contribution limit, TFSA contribution room in 2025 will now exceed $100,000, reaching $102,000.
TFSA annual contribution room:
To find out how much you can contribute to your TFSA, consult “My Account for Individuals” from the Canada Revenue Agency (CRA).
Opening a TFSA in Canada is easy. You can do it online, or with the help of a financial advisor at your bank, credit union or insurance company. You can also open a TFSA account with an online brokerage platform, if you’d like to manage your own investment portfolio.
There are many eligible investments in a TFSA:
In short, Canadians will be able to contribute an additional $7,000 to their TFSAs as of January 1, 2025, in addition to their unused contribution room from previous years and withdrawals made in 2024. With this new contribution limit, TFSA contribution room in 2025 will now be $102,000.
The TFSA (Tax-Free Savings Account) allows you to save money tax-free. Contributions are not tax-deductible, but the earnings and withdrawals are not taxable. The contribution limit for the TFSA is $7,000 for 2024 and 2025.
The TFSA contribution limit for 2024 and 2025 is $7,000. To this must be added your unused contribution room and withdrawals from the previous year. The maximum amount you can contribute to a TFSA in 2024 is $95,000. As of January 1, 2025, it will be $102,000.
The TFSA is not an investment or a financial product. Rather, it’s an account in which you can make investments, such as stocks, ETFs or savings products. Use our bank account comparator or contact your financial advisor to find out the interest rate on TFSA-eligible savings products.
If you were 18 or older in 2009, you can contribute a maximum of $95,000 to your TFSA in 2024. In addition, your TFSA contribution room in 2025 will be $102,000.
The TFSA allows you to save money tax-free for a variety of purposes: short-, medium- or long-term projects. TFSA contributions are not tax-deductible, and withdrawals are not taxable. The FHSA is useful for the purchase of a first home, with tax-deductible contributions and non-taxable eligible withdrawals.
Savings are here:
