The TFSA Cap will Stay at $5,500 for 2017

The annual TFSA dollar limit will remain frozen at $5,500 for 2017 and, in fact, may be stuck at that level until at least 2019, as a result of years of low inflation and the unusual rounding mechanism built into the TFSA limit.

This week, the Canada Revenue Agency announced the inflation rate — 1.4 per cent — that will be used to index various personal income tax and benefit amounts to inflation. This rate is calculated using the Consumer Price Index data as reported by Statistics Canada.  Read More…

This article has 9 Comments

  1. Magen R.

    I'm starting to miss Harper and his unbuckling tfsa. I've already maxed out again this year. They should make it so every 5 years the limit goes back to $10K for us who have the ability to use it.

  2. Martin Osterman

    Now if we can just get more types of accounts in Canada that have similar, but different offerings. It still feels like there are few more types of accounts that would sit between a tfsa and a registered account.

  3. Finn Pennington

    Hard to believe it wasn't here before 2009. And the USA had their equivalent (Roth?) for decades. Usually its us who have the innovations first.

  4. Jeramie

    Oh wow thanks for the reminder. I have to move my account which involves taking out and depositing. Was waiting until the end of the year to do this.

  5. Olley

    Wow so its officially stuck that way until 2019? 🙁

  6. Blair B

    Am i the only one that has never deposited any money into this type of account?

  7. Denis Dornheim

    The article fails to mention that RRSP limits, although higher, is linked to how much taxable income one earns. So although its higher than TFSA its not comparable.

  8. Malcom Steelman

    So in short, inflation is linked to the limit sizes. But why was it briefly much higher under the Harper administration?

    Not like they were matching it against inflation that year.

  9. Eliezer

    It's really interesting that in 2017 the cumulative limit will be around $52,000! Soon it will pass 100 and then there won't be any excuse to blame the government of high taxes. You could live off the interest.

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