Skip to main content
Ratehub logo
Ratehub logo

TFSA Contribution Limit to Decline in 2016

Ratehub logo

The annual TFSA contribution limit will revert back to $5,500 starting in 2016, Finance Minister Bill Morneau said on Monday.

The announcement was expected as the Liberals pledged to roll back the limit.

However, he noted that the $10,000 contribution limit for 2015 will stay the same.

Also, the limit will again be indexed to inflation in $500 increments. Indexation was originally eliminated in the 2015 federal budget by the former Conservative government.

YearTFSA contribution limit
2009$5,000
2010$5,000
2011$5,000
2012$5,000
2013$5,500
2014$5,500
2015$10,000
2016$5,500

He also announced the income tax rate for Canadians earning between $45,282 and $90,563 annually will decline to 20.5% from 22%, starting Jan. 1, 2016.

Also, those earning more than $200,000 a year will now face an income tax rate of 33%. Currently, Canadians earning more than $138,586 are taxed at a rate of 29%.

Flickr: GotCredit

The knowledge bank

A wealth of wealth knowledge delivered right to your inbox.

By submitting your email address, you acknowledge and agree to Ratehub.ca‘s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.