Here are the details for the TFSA and RRSP contribution limits for 2022 and 2023.
A Tax-Free Savings Account (TFSA) is a savings account that is available to Canadian residents, allowing you to earn investment income tax-free. The amount that can be contributed to a TFSA in a given year is subject to certain limits set by the Canadian government.
The TFSA contribution limit is based on your individual contribution room, which accumulates each year, beginning in 2009. The annual contribution limit for the 2025 tax year is $7,000. This means that if you have never contributed to a TFSA before, you could contribute up to $102,000 for the 2025 tax year.
|
Year |
Limit |
|---|---|
|
2025 TFSA |
$7,000 |
|
2026 TFSA |
$7,000 |
It is important to note that any unused contribution room can be carried forward to future years, and any withdrawals made from the TFSA will not affect the individual's contribution room until the following year.
It is also important to be aware of over-contribution penalties, as contributing more than the allowable limit can result in a penalty tax of 1% per month on the excess amount.
A Registered Retirement Savings Plan (RRSP) is a tax-advantaged savings account that is available to Canadian residents to save for their retirement. The amount that can be contributed to an RRSP in a given year is subject to certain limits set by the Canadian government.
The contribution limit for an RRSP is based on your individual earned income from the previous year, up to a maximum limit. For the 2025 tax year, the maximum RRSP contribution limit is 18% of earned income up to a maximum of $32,490. This means that if your earned income in 2025 was $100,000, you could contribute up to $18,000 to your RRSP in 2025.
|
Year |
Limit |
|---|---|
|
2025 |
18% of income, to a maximum of $32,490 |
|
2026 |
18% of income, to a maximum of $33,810 |
It is important to note that there may be additional contribution room available if you did not contribute the maximum amount in previous years. Unused contribution room can be carried forward indefinitely and used in future years.
It is also important to be aware of over-contribution penalties. If you contribute more than your RRSP contribution limit, they may be subject to a penalty tax of 1% per month on the excess amount.
Click on the button below for instructions on how to determine your own personal TFSA and RRSP Contribution Limits.
If you have any questions about how TFSA and RRSP contributions fit into your goals and overall plan, please fill out the form below and we'd be happy to help.
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