Canadian savers now know how much extra room they’ll get in their tax-free savings accounts (TFSA) in the year to come.
The TFSA is a savings vehicle that allows Canadians to make contributions and grow investments inside with any withdrawals remaining tax-free.
Contribution room starts to grow every year after an individual turns 18. How much that contribution space an individual gets in a year is typically calculated on a base of $5,000 indexed to the rate of inflation in the preceding year, rounded to the nearest $500.
The Canada Revenue Agency confirmed to Global News that the TFSA’s contribution limit will be $7,000 in 2025, matching the second largest-ever limit seen in 2024.
While prices have continued to climb throughout the past year, the pace of inflation has been significantly cooler than in the previous year, keeping the size of the increase steady.
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The year with the biggest TFSA contribution limit increase was 2015, …