The TFSA limit for 2021 is $6000. This is the same amount as in 2020 and in 2019, as the government has not changed the TFSA deposit since 2018, when it was $5500 per year per eligible Canadian. This means that if you have contributed the maximum amount into your TFSA since it was incorporated In 2009, you would have the following contribution amounts:
| Year | TFSA Contribution Limit | Total Contributions (Since Inception) | Change in Yearly Contributions |
|---|---|---|---|
| 2009 | $5000 | $5000 | $0 |
| 2010 | $5000 | $10,000 | $0 |
| 2011 | $5000 | $15,000 | $0 |
| 2012 | $5000 | $20,000 | $0 |
| 2013 | $5500 | $25,500 | +$500 |
| 2014 | $5500 | $31,000 | $0 |
| 2015 | $10,000 | $41,000 | +$4500 |
| 2016 | $5500 | $46,500 | -$4500 |
| 2017 | $5500 | $52,000 | $0 |
| 2018 | $5500 | $57,500 | $0 |
| 2019 | $6000 | $63,500 | +$500 |
| 2020 | $6000 | $69,500 | $0 |
| 2021 | $6000 | $75,500 | $0 |
This means that if you had contributed the maximum amount each year into your TFSA, you would have contributed a total of $75,000! With asset prices including stocks, GIC’s and bonds providing strong returns over this period, the market value on your TFSA account could even be much higher than this! And since gains on investments in the TFSA are tax-free, this makes contributing every year and the maximum amount important to building wealth.
Why is it important to deposit in my TFSA?
The biggest appeal of depositing in your TFSA account is that any capital gains you have in the account will be tax-free. This means that
Where can I check my TFSA contribution limit?
Your TFSA and RRSP limits for each year will be available to access through your My CRA account. This makes it easy to determine how much you will be able to contribute each year with complete certainty, and can help you determine how much you are eligible to contribute if you missed contributions over the years.
A helpful tip to keep track of not only your TFSA limit but also your investment performance in this account can be through making an excel tracking sheet. With this, you can determine how much you have contributed in the past (to better keep track), assess your investment performance, while also comparing your investment performance to benchmarks and your goals. This can help you to stay on track and nimbler to meet financial goals.
Is it better to contribute to my TFSA or RRSP?
There are many variables that determine which account is better to deposit in