raffadalbo
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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
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