Hello Everyone,
The annual limit for a Tax-Free Savings Account (TFSA) contribution in 2025 is $7,000.
A Canadian taxpayer who has never contributed to a TFSA and has been eligible for one since its inception in 2009 will have a cumulative contribution room of $102,000.
The TFSA can save Canadians (non-US citizens) a considerable amount of taxes over a lifetime since money in the account grows and pays out tax free. The TFSA can also help Canadians to reduce potential probate fees since assets in the account can flow directly to the designated successor holder or beneficiary without going through the estate.
Appreciating that everyone’s situation is unique, as well as the complexities involved in this and similar programs, professional tax advice is recommended.
Your CommonWealth Team
