The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.
Important: Don’t exceed your TFSA contribution room to avoid the significant penalties on excess contributions.
The annual TFSA dollar limit for the tax years 2024 & 2025 is $7,000.