How much can I contribute to my TFSA in Ontario?

The TFSA is a federal program available to all Canadian residents aged 18 or older with a valid Social Insurance Number, including Ontario residents. The annual contribution limit is set by the federal government each year and indexed to inflation (rounded to the nearest $500). Your total available room is the sum of every year's annual limit since you turned 18 (or since 2009, when TFSAs were introduced), plus any amounts you withdrew in prior years.

Because contribution room is cumulative, someone who has never contributed to a TFSA since it became available could have substantial accumulated room. The CRA tracks your room and displays your current available amount in My Account. However, there can be delays in the CRA's records — financial institutions report contributions in early spring, so checking your room mid-year may not reflect recent contributions made at the start of the year.

Over-contributing to a TFSA triggers a penalty tax of 1% per month on the excess amount for every month it remains over the limit. This penalty can accumulate quickly and is not waived automatically. If you have excess contributions, you should withdraw the excess immediately to stop the penalty from growing. Ontario does not have a separate provincial TFSA program; federal rules govern everything.