There is actually no limit beyond what fits on the screen.
However, as far as the game is concerned, for things like collision detection, your sprite is 32x32 pixels, regardless of the size of the onscreen graphics. This can cause a few surprises if you aren't careful-- a character can basically pass through the outer edges of a large sprite without "touching" it, as far as the program is concerned.
To demonstrate this, here's an easy trick: Export a charset graphic. Open it in your favorite paint program, and then resize it to be twice as big. (Yeah, it's blurry now, isn't it?)
Re-import it. You'll have a sprite that's twice as big. But contact will still be checked around that small block at the base.