As we look ahead to 2025, Canadians have two financial updates worth noting:
- a consistent TFSA contribution limit
- and a 𝗽𝗿𝗼𝗽𝗼𝘀𝗲𝗱 GST/HST holiday aimed at lightening your holiday spending.
TFSA Contribution Room for 2025: Still $7,000
The Canada Revenue Agency (CRA) has confirmed that the annual TFSA contribution limit will remain at $7,000 for 2025 — the same as in 2024. While the annual limit isn’t increasing, it still offers a solid opportunity to build tax-free savings.
For those who have been eligible to contribute since the TFSA launched in 2009 and haven’t used any room, the total cumulative contribution space will now reach $102,000 in 2025. A steady limit, but still plenty of room to grow your savings. ([Source: CRA](https://www.canada.ca/en/revenue-agency/services/tax/free-savings-account.html))
Proposed GST/HST Holiday: Relief for Holiday Shoppers
The federal government has introduced Bill C-78, proposing a temporary GST/HST holiday from December 14, 2024, to February 15, 2025. This measure aims to ease the burden of holiday spending by removing GST/HST on select goods like:
- Groceries
- Children’s clothing and footwear
- Toys
- Restaurant meals
As of now, the bill has passed three readings in the House of Commons and awaits final approval in the Senate — expected soon.
Implications
– For Savers: The consistent $7,000 TFSA limit gives you a chance to stay on track with your tax-free investment goals.
– For Shoppers: If the GST/HST holiday is approved, your holiday budget could stretch a little further.
Staying informed helps you take full advantage of what’s available — because every dollar could count towards something.
What’s your take on these updates?
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