For those with unused contribution room, the TFSA allows carry-forwards starting from 2009, when the program was introduced, or from the year they turned 18 if it was later.
With the 2025 increase, the total contribution room for someone who has never contributed to a TFSA and was at least 18 years old when the program launched will reach $102,000, up from $95,000 in 2024.
This substantial room makes the TFSA a versatile option for Canadians with varying savings goals.
A TFSA is a tax-sheltered account where funds and investment returns can be withdrawn without incurring taxes.
As the CRA explains, “In comparison, half of capital gains on equities in non-registered accounts are taxed and income is fully taxed. Dividends are also subject to full taxation with the exception of a tax credit on eligible payouts.”
