The 2024 TFSA dollar limit is, or is not, possibly maybe confirmed, but not really, at $7,000, by me and not the CRA

[raffadalbo]

Note: on the mobile app, you may need to swipe to the right on the table to see all 7 columns.

The average monthly CPI for all items for October 2022 to September 2023 was 155.875 (source), representing an increase of 4.7% over the previous 12-month period. As a result, the indexed TFSA dollar amount for 2024 $6,859, which is rounded to the nearest $500 to arrive at the $7,000 TFSA dollar limit for 2024. The lifetime limit as of January 1, 2024 for someone who was 18 in 2009 will be $95,000. See my calculations in the table below.

For those that are curious, there would need to be an increase of 5.7% in the average monthly CPI for the following 12 months (October 2023 to September 2024) in order for the 2025 TFSA limit to be $7,500.

As of 2016, the TFSA dollar limit is indexed for inflation retroactively back to 2009, but until 2015 the amount was manually set by the government and not automatically adjusted for inflation. The definition of "TFSA dollar limit" in subsection 207.01(1) of the Income Tax Act points to section 117.1 for this adjustment based on “the Consumer Price Index for the 12 month period that ended on September 30 next before that year”. This is the same adjustment for personal credits, tax brackets, and other amounts, so expect a similar increase in the basic personal amount, etc.

The CRA typically confirms this in November. You can see their page here for the annual increases in the TFSA dollar limit, tax credits, tax brackets, and other amounts. (Note that certain other amounts, like the RRSP limit, CPP limit, etc. do not appear there as they are based on a different measure of inflation.)

Year
Base Amount
CPI Average
Adjustment Factor
Indexed Dollar Limit
Rounded to $500
Cumulative Room

2009
$5,000
113.558
-
N/A
N/A
$5,000

2010
$5,000
114.208
1.006
N/A
N/A
$10,000

2011
$5,000
115.817
1.014
N/A
N/A
$15,000

2012
$5,000
119.067
1.028
N/A
N/A
$20,000

2013
$5,500
121.392
1.020
N/A
N/A
$25,500

2014
$5,500
122.533
1.009
N/A
N/A
$31,000

2015
$10,000
124.567
1.017
N/A
N/A
$41,000

2016
$5,000 (indexed)
126.150
1.013
$5,559
$5,500
$46,500

2017
$5,000 (indexed)
127.933
1.014
$5,637
$5,500
$52,000

2018
$5,000 (indexed)
129.850
1.015
$5,722
$5,500
$57,500

2019
$5,000 (indexed)
132.717
1.022
$5,848
$6,000
$63,500

2020
$5,000 (indexed)
135.283
1.019
$5,959
$6,000
$69,500

2021
$5,000 (indexed)
136.692
1.010
$6,019
$6,000
$75,500

2022
$5,000 (indexed)
139.983
1.024
$6,163
$6,000
$81,500

2023
$5,000 (indexed)
148.842
1.063
$6,551
$6,500
$88,000

2024
$5,000 (indexed)
155.875
1.047
$6,859
$7,000
$95,000

 

[lt3]

@raffadalbo The limit is indexed to inflation and rounded up to the nearest $500, so you are correct. It should be $7000 for 2024.

 

[raffadalbo]

@lt3 Despite how unsure of myself I may sound in my title (which is a joke directed toward certain comments on a similar post I made last year) I am very confident in the math in my table.

 

[joshfl]

@raffadalbo How can you possibly know this if the CRA doesn't even know? Do you have a time machine? [sup]/s[/sup]

 

[raffadalbo]

@joshfl It’s all in the theory of relativity. If you do tax fast enough then e=mc[sup]2[/sup] and the result is time travel. Simple!

 

[kj77]

@raffadalbo Don’t forget to carry the 4.

 

[ladyestella]

@raffadalbo What if they decide to throw another $10k curve ball again?

 

[caitriona]

@raffadalbo This might be the first time I'll be contributing towards my variable mortgage before my TSFA! Started at 1.45%, I'm now at 6.2%.

 

[chris5023]

@caitriona Same boat. Not happy.

 

[morgan13]

@caitriona Started from the bottom, now we're here.

 

[endsoftheearth]

@caitriona No offense. But who talked you into a variable rate at that time?

Did you expect the Bank of Canada to head into Negative Interest Rates?

Like, where was the upside?

 

[caitriona]

@endsoftheearth We never expected rates to go lower. But at the time, the fixed rate offered to us was 3.45%, which was already more than the double of variable. Even in case of increases, it would take 8 consecutive increases of .25 points before breaking even. So even if interest rate would rise to 4% over 5 years, the variable rate would've been worth it.

We knew that interest rates would rise. What we did not expect was that rates would skyrocket FASTER THAN IT EVER DID in the entire BoC's entire history. Single .75 increases have been a extremely rare in the past. Consecutive .75 increases are unheard of.

The other factor was that we were in a new relationship buying a house in a new neighborhood. We could easily afford breaking up a variable mortgage with 3 months interest penalty if things turned sour (they haven't, we're happier than ever). Breaking a fixed mortgage would've cost more than 10 times the penalty, or a significant portion of the mortgage. It would have been financially disastrous.

 

[dlang10]

@raffadalbo Safe to say it won’t be less than $6500

 

[shepherddauid]

@raffadalbo I've got a casual plan to find an old lady, like late 80s, early 90s, with no TFSA contribution.

We get married. I give her $95,000, and then a year later she dies of natural causes.

I'm sad for a few days.

But because we were married, I get to transfer her TFSA to my own. BAM....190K in contribution room.

The CRA hates this one simple trick.

Any single old ladies out there with terminal cancer looking for a husband for a few weeks?

 

[dan1958]

@shepherddauid Is this really a thing? When my mother died she had a TFSA but it did not transfer to my father, he has access to it but it did not increase his space. And he cannot contribute to that TFSA

 

[shepherddauid]

@dan1958 Named beneficiary

You have any old single aunts?

 

[lichti]

@raffadalbo I appreciate this title . I thought it was ridiculous how people threw tantrums over your word choice last year. Great post.

 

[raffadalbo]

@lichti There's always something to argue about!

 

[tnvolfirefighter]

@raffadalbo I don't keep track of how much TFSA I've contributed and it's kind of impossible to do so now

I completely rely on the CRA to tell me how much room I have available

How often is that updated

 

[justdoug]

@tnvolfirefighter Once per year on the CRA website