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Tax News

Tax-Free Savings Account Contribution Limit Increased

Savers rejoice! At long last, the annual contribution limit on the Tax-Free Savings Account (TFSA) has been upped. In 2019, anyone who's eligible to contribute to the TFSA can con-tribute up to $6,000 annually, up from $5,500 in 2018.

As the name suggests, your money will grow tax-free inside the TFSA. Also, unlike the Regis-tered Retirement Savings Plan, you won't have to pay any income tax when you withdraw your money.

Rates & Limits

  • Employment Insurance (EI) Premiums are being decreased. The EI rate is being re-duced from 1.66 percent in 2018 to 1.62 percent in 2019.
  • Maximum pensionable earnings, the amount used to calculate Canada Pension Plan contributions for the year, will increase to $57,400 in 2019, up from $55,900 in 2018. Likewise, the employee & employer contribution rates for 2019 will increase by 5.1 percent from 4.95 percent in 2018.