TFSA Contribution Limit and Withdrawal Rules for 2025
A tax-free savings account, or TFSA, is a registered account that allows you to save, invest and withdraw money without paying taxes. It can be a valuable investment tool for your portfolio if you know and follow the contribution limits set by the Canada Revenue Agency, or CRA.
In 2025, the annual TFSA contribution limit is $7,000. The total TFSA contribution room for someone who was at least 18 years of age in 2009 is $102,000.
TFSA contribution limits
The CRA determines TFSA contribution limits, or the maximum amount Canadians can contribute to their accounts.
Even if you haven’t been investing in a TFSA, you’ve been accumulating contribution room for every year since 2009 that you have been at least 18 years old, had a Social Insurance Number (SIN) and been a Canadian resident.
TFSA historical contribution limits
YEAR | TFSA CONTRIBUTION LIMIT |
|---|---|
2025 | $7,000 |
2024 | $7,000 |
2023 | $6,500 |
2022 | $6,000 |
2021 | $6,000 |
2020 | $6,000 |
2019 | $6,000 |
2018 | $5,500 |
2017 | $5,500 |
2016 | $5,500 |
2015 | $10,000 |
2014 | $5,500 |
2013 | $5,500 |
2012 | $5,000 |
2011 | $5,000 |
2010 | $5,000 |
2009 | $5,000 |
As of 2025, the maximum a person could have contributed to a TFSA is $102,000.
How to calculate your TFSA contribution limit
You can find your current TFSA contribution room by logging into the CRA My Account website, or by calling the Tax Information Phone Service (TIPS) at 1-800-267-6999.
Keep in mind that if you’ve contributed to your TFSA in the current tax year, that amount won’t be reflected in your total limit on the CRA portal. It’s important to keep track of your TFSA contributions and withdrawals, because there are penalties for over-contributing. More on those below.
As a general rule, you can calculate your TFSA contribution room by adding these three amounts:
The current year’s contribution limit.
Unused contribution room from previous years.
Withdrawals from previous years.
Let’s say you opened your TFSA in 2024, when the contribution limit was $7,000. Assuming you were at least 18 years old in 2009 and you’ve been a tax-paying Canadian resident since then, your maximum contribution for 2024 also includes the room from the years before you started your TFSA — another $95,000.
You started off by contributing $3,000 on January 1 and then added another $2,000 once your tax refund came through in May. In July, you withdrew $1,000 from your TFSA to pay for a vacation, and weren’t able to contribute any more money for the rest of the year.
In 2025, you can add the $1,000 you withdrew from your TFSA and the $2,000 in leftover 2024 contribution room to the 2025 limit of $7,000. Your contribution limit for 2025 caps at $98,000.
What happens if you over-contribute to your TFSA?
You don’t want to go over your annual TFSA contribution limit because over-contributions are taxed. You’ll be penalized at a rate of 1% of the excess amount for every month it’s in your account.
If you contributed $7,000 to a TFSA in a year where your limit was $6,000, for example, you’d pay a 1% penalty on the extra $1,000, or $10, every month until you withdraw it.
Additionally, when you over-contribute or become a non-resident of Canada, you’ll need to file Form RC243, Tax-Free Savings Account (TFSA) Return and pay any taxes owing by June 30 of the following year.
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How to avoid over-contributing to your TFSA
To avoid over-contributing to your TFSA and to lower your losses make sure you:
Replace withdrawals next year unless you have contribution room. If you withdraw funds from your TFSA, you cannot re-contribute that amount in the same calendar year unless you have available contribution room. Otherwise, you need to wait until Jan. 1 of the next year.
Account for losses. If an investment held in your TFSA loses money, that loss is not considered a withdrawal, so it doesn’t give you additional contribution room. If you withdraw the shrunken amount, that’s the amount that will be added to your future contribution room. For example, say you contributed $10,000 to your TFSA and invested in stocks that lost value and are now worth $6,000. When you withdraw $6,000 from your account, only $6,000 will be added back to your TFSA contribution limit next year.
Remember you have one contribution limit for all of your TFSAs. Your contribution limit doesn’t increase if you have multiple TFSAs. If you have three TFSAs in 2025, you can still only contribute a total of $7,000 for the year (plus any unused contribution room from previous years).
Consider transfers. If your financial institution transfers your TFSA to another financial institution on your behalf, it is not considered a withdrawal. But if you withdraw the money and invest it in a new TFSA elsewhere, it is treated as a contribution, which may result in over-contribution and potential tax penalties.
Know that management fees are not withdrawals. If your financial institution charges fees to manage your TFSA, those fees are not considered TFSA withdrawals. They are not added back to your contribution room the following year.
» MORE: How does income tax work?
Frequently asked questions
How much can I contribute to my TFSA?
How much can I contribute to my TFSA?
In 2025, your TFSA contribution limit is $7,000. If you were 18 years of age in 2009, meet all the eligible criteria, and have not contributed to a tax-free savings account before, your total contribution room is $102,000.
What is TFSA contribution room?
What is TFSA contribution room?
TFSA contribution room is the amount Canadians have accumulated for every year since 2009 that they have been at least 18 years of age, had a Social Insurance Number, and been a Canadian resident. While the TFSA contribution limit for 2025 is $7,000, the maximum contribution room is $102,000.
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