TFSA Contribution Limit for 2025: What You Need to Know

As we head into 2025, Canadian savers are receiving an important update regarding their Tax-Free Savings Account (TFSA). The Canada Revenue Agency (CRA) has announced that the TFSA contribution limit for 2025 will be $7,000—the same as the limit set for 2024.

This increase is based on inflation, though the inflation rate in the past year was lower than in 2023, which has kept the increase steady. The TFSA remains a valuable savings tool for Canadians, allowing individuals to contribute, grow investments, and withdraw funds tax-free.

How Contribution Room Works

Each year, your TFSA contribution room grows once you turn 18. The amount you can contribute is calculated based on a $5,000 base, adjusted for inflation, and rounded to the nearest $500. For those born before 1991, your total TFSA contribution room will reach $102,000 in 2025, allowing you to take full advantage of the tax-free benefits of this savings vehicle.

Checking Your Contribution Room

To check your personal TFSA contribution room, you can log into your CRA MyAccount. This tool will provide you with an up-to-date snapshot of your available contribution space.

Why the TFSA Matters

The TFSA is an excellent option for Canadians looking to save for the future. Contributions to your TFSA grow without being taxed, and any withdrawals—whether for emergencies, big purchases, or retirement—are also tax-free.

Written By: Feda Shureih