2021 TFSA Limits Released

The TFSA new contribution limit for 2021 has been officially released. That limit is $6,000, matching the amount set in 2019 and 2020.

With this TFSA dollar limit announcement, the total contribution room available in 2021 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009 is $75,500. If you were 18 or older in 2009 $75,500 is your current limit. To be eligible for a TFSA you must be 18 years of age and can set up a plan in the year you turn 18.

The annual TFSA dollar limit is indexed to inflation and rounded to the nearest $500. The Canada Revenue Agency’s indexation increase for 2021 is 1.0%.

Here are the dollar amounts by year:

For 2009, 2010, 2011 and 2012: $5,000

For 2013 and 2014: $5,500

For 2015: $10,000

For 2016, 2017 and 2018: $5,500

For 2019, 2020 and 2021 $6,000

Federal tax bracket thresholds for 2021

• The 33.0% tax rate begins at taxable income of over $216,511, up from $214,368 in 2020.

• The 29.0% tax rate begins at taxable income of over $151,978, up from $150,473 in 2020.

• The 26.0% tax rate begins at taxable income of over $98,040, up from $97,069 in 2020.

• The 20.5% tax rate begins at taxable income of over $49,020, up from $48,535 in 2020.

• Income below $49,020 is taxed at 15.0%.

The basic personal amount for 2021 is $13,808 for taxpayers with net income of $151,978 or less. At income levels above $151,978, the basic personal amount is gradually clawed back until it reaches $12,421 for net income of $216,511.