What's the 2025 TFSA contribution limit?

The arrival of a brand new year carries a lot of symbolic importance — but it has financial implications too. January 1st of every year is the day more contribution room opens up in your Tax-Free Savings Account (TFSA). For 2025, that contribution limit will be $7,000.

If you've been eligible to contribute to a TFSA since it was introduced in 2009, the cumulative contribution limit is $102,000 as of January 1, 2025, for anyone who has never made a contribution.

It's the first time the cumulative contribution room has exceeded $100,000.

Celebrate by using your TFSA contribution room

If you're like many people and either don't have a TFSA, or are nowhere near using all the room that's available to you, you might want to consider a goal of finding an extra $500 or $1,000 over the year to put into one. Consider setting up automatic contributions into a TFSA every week or month so you don't need to keep reminding yourself, and the balance slowly grows over time. 

Or try the 52-week challenge, starting with just $1, and watch it grow to $1,378 by the end of a year. Tangerine Clients can set up a 52-week-challenge Money Rule that does just that.

TFSA fast facts

• If you're 18 or older, a resident of Canada, and have a Canadian Social Insurance Number, you can open a TFSA.
• Even though the name is Tax-Free Savings Account, you can open a TFSA and hold long-term investments in it, like stocks, bonds, ETFs, and mutual funds.
• The "Tax-Free" part means the money inside the account is sheltered from tax, as long as you remain within your contribution limits. You put after-tax dollars into the account, and can make withdrawals from it without those withdrawals being subject to tax. This is almost the reverse of an RSP, where contributions reduce your taxable income (often resulting in tax savings), but withdrawals are added back to your taxable income (often resulting in tax owing).
• You can hold multiple TFSA accounts. But your contribution limit applies to all your TFSA accounts combined, so if the TFSA contribution room available to you is $7,000, you could technically put $1 into 7,000 different TFSA accounts. But that would be an unnecessary hassle.
• Check how much contribution room you have in your TFSA by logging into the Canada Revenue Agency's My Account for Individuals. 

Use your TFSAs to work toward your goals

While most people earmark RSPs for retirement planning, TFSAs have been used for short-term, medium-term, and long-term goals. Part of the reason for this is that when you make a withdrawal, the amount of the withdrawal is added to your contribution limit for the next year. In other words, you can regenerate contribution room. This makes it more flexible than an RSP.