Its official, the TFSA annual contribution limit has been announced for 2023! The annual limit is $6,500 which is an increase of $500 from the $6000 limit set from 2019 to 2022.
How is the TFSA annual contribution limit decided? The amount of $5000 is indexed to inflation and rounded to the nearest $500. The Canada Revenue Agency’s indexation increase for 2023 is 6.3%.
Starting January 1st, the cumulative contribution amount since 2009 will be $88,000. Below is a chart that outlines the previous years’ annual contribution limits.
| Year | Amount |
| 2009-2012 | $5,000 |
| 2013-2014 | $5,500 |
| 2015 | $10,000 |
| 2016-2018 | $5,500 |
| 2019-2022 | $6,000 |
| 2023 | $6,500 |
TFSAs are extremely beneficial as they allow our savings to be invested, grow, and be withdrawn tax free. I have previously written a couple blog posts that highlight the benefits and importance of TFSAs. I encourage you to give them a read!
TFSA Part 1 – The Power of Compounding
TFSA Part 2 – Tax Free Income & Tax Free of Death
You can also read more about TFSAs on our Tax Free Savings Account page, which you can find under the heading: ‘Quick Facts.’
Please do not hesitate to give us a call if you have any questions.
“How will you replace your current income in retirement?”™ – Jim Seyers