How to Find My TFSA Limit and Start Saving

The first step to maximizing your savings is to understand your TFSA limit. You can find your TFSA limit by checking your previous year's tax return or by logging into your online banking account.

The TFSA limit is determined by the Canadian government and is adjusted annually. For the 2022 tax year, the TFSA limit is $6,000, but this limit can change over time.

To make the most of your TFSA, you'll want to start saving as soon as possible. You can contribute up to your TFSA limit each year, and the money you contribute grows tax-free.

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You can find your TFSA contribution room in your latest tax return. It's a good idea to check it regularly to see how much you can contribute.

Your TFSA contribution room is made up of the total of your TFSA dollar limit, any unused TFSA contribution room from previous years, and any withdrawals made from the TFSA in the previous year.

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You can recontribute amounts you've withdrawn on or after January 1 of the following year or years, and your contribution room carries forward indefinitely. This means you can make up for lost time and still take advantage of the tax-free savings.

Here's a handy chart to calculate your own contribution limit:

If you turned 18 after 2009, your contribution room would start the year you turned 18 and accumulates each year after that.

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You can contribute up to $6,000 to your TFSA in 2023.

To withdraw money from your TFSA, you don't need to pay taxes on the withdrawal itself. However, you will need to consider the impact on your overall taxes and any potential penalties for over-contributing.

Your TFSA contributions are not considered income for tax purposes, but they can affect your Old Age Security (OAS) benefits. If you're receiving OAS, your TFSA withdrawals may be subject to the OAS clawback.

You can hold a variety of investments in your TFSA, including cash, stocks, bonds, and mutual funds.

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Finding your TFSA limit is crucial to avoid over-contributing and facing penalties. You can find your TFSA contribution room information by using one of the following services: your CRA account for individuals, your CRA account if you have an authorized representative, or Automated service 1-800-959-8281.

You can also receive a TFSA Room Statement or a TFSA Transaction Summary that shows the information that the CRA received from your TFSA issuer(s) about your contributions and withdrawals. If the information is not complete or if you have made contributions to your TFSA this year, use Form RC343, Worksheet – TFSA contribution room, to calculate your TFSA contribution room for the current year.

The annual TFSA dollar limit is indexed to inflation, and for 2025, it is $7,000. You can check your exact contribution limit by logging on to your CRA account.

To calculate your TFSA contribution room, you need to know the TFSA dollar limit of the current year, any unused TFSA contribution room from previous years, and any withdrawals made from the TFSA in the previous year. Here's a simple formula to help you calculate your TFSA contribution room:

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TFSA contribution room = TFSA dollar limit + unused TFSA contribution room + total withdrawals made in the previous year

Here's an example of how to calculate your TFSA contribution room:

Remember to keep records of your TFSA transactions to ensure that your contributions do not go over your TFSA contribution room.