New TFSA Contribution Limit in 2021



The Tax-Free Savings Account (TFSA) contribution limit for 2021 is $6,000, remaining the same as 2019 and 2020.


If you have never contributed to a TFSA and have been eligible since its introduction in 2009, your cumulative contribution room will be $75,500 in 2021.


The annual TFSA contribution limit is indexed to inflation and automatically rounded to the nearest $500. According to the Canada Revenue Agency (CRA), the inflation indexation increase for 2021 is 1%.


Withdrawals are tax free and can be contributed at any time in the following tax year. If you make a withdrawal, your gains and losses will be factored into your contribution room.


What is a TFSA?


The TFSA program was introduced in 2009 as a way for individuals, ages 18 and older to save money, tax-free, throughout their lives. TFSA contributions are not subject to income tax, and any income generated or earned in the account is normally tax-free, even after it is withdrawn.1


You can hold a wide range of investments in a TFSA account, including: GICs, ETFs, stocks and bonds, mutual funds and high-interest savings accounts.


We can help you determine if a TFSA is right for you. Get in touch with us at 1.800.561.9401 or



1The Tax-Free Savings Account,

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