For the year 2021, you can contribute another $6,000 to your TFSA. In addition to the $6,000, you can also contribute any unused room you currently have plus whatever you withdrew during the previous year. Overcontributions are subject to a 1% monthly penalty tax until you have either withdrawn the excess or until the additional room becomes available in the new year. If you are unsure of your contribution room, you can check online using CRA’s My Account.
There were no changes to Federal tax brackets with the exception of income over $151,978 up to $216,511, which will be taxed at 29.32% in 2021 as opposed to 29.22% in 2020. Visit Tax Tips for more information.
