On average, British Columbians contributed $5,898 to a Tax Free Savings Account (TFSA) in 2016, according to a BMO study released February 23 – the highest amount of all provinces.
This was more than 28% higher than the average Canadian contribution of $4,592 and almost 24% more than Ontario, which came in second place with $4,771.
The study found 35% of those in B.C. contributed less than $5,500—the maximum contribution in 2016, as dictated by the Canada Revenue Agency (CRA)—compared with 39% nationally. Seventeen percent of British Columbians donated more than $5,500, compared with 15% across Canada; these individuals, per the CRA , will be subject to tax of around 1% of any amounts contributed beyond the maximum, depending on their allowable TFSA contribution room.
Across the country, those surveyed reporting holding $17,328 in their TFSAs, which is slightly higher than the average of $17,133 last year.
Those who contributed less this year say the most common reason for doing so was because they simply did not have enough money (43%), followed by needing the cash for other expenses (36%).
@EmmaHampelBIV
