Budget raises TFSA contribution limit to $10,000

In Budget 2015, the federal government almost doubled the amount that Canadians can contribute to TFSA each year from $5,000 to $10,000 effective immediately. Unlike other savings methods such as RRSPs, contributions to the TFSA accounts are after-tax funds, but can grow tax free indefinitely. Nearly doubling the limit is great news for savers and investors, but it also represents foregone future tax revenue for governments. By the government's own estimates, the extra room in the accounts will cost government coffers $85 million in the current fiscal year, jumping to $360 million annually by 2019. Five years on, that's $1.1 billion in foregone revenue.