RRSP vs TFSA
Calculator
Which account gives you more money? Compare after-tax outcomes for RRSP vs TFSA based on your income today and expected retirement income.
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Comparison results
| Gross value at end | — | — |
| Tax refund today (est.) | — | $0 |
| Tax on withdrawal | — | $0 |
| Current marginal rate | — | — |
| Retirement marginal rate | — | — |
| After-tax value | — | — |
Results are estimates for informational purposes only — not financial advice. Always consult a licensed professional before making decisions. Terms of use →
RRSP vs TFSA FAQs
The key differences that determine which is better for you.
When is an RRSP better than a TFSA?
An RRSP is better when your current marginal tax rate is higher than your expected retirement rate. For example, if you're in the 43% bracket now but expect to be in the 25% bracket in retirement, the RRSP gives you a 43% tax deduction today but is only taxed at 25% on withdrawal — a net gain of 18 percentage points.
When is a TFSA better than an RRSP?
A TFSA is better when your current tax rate is similar to or lower than your retirement rate — for example, lower-income earners or those expecting significant CPP, OAS, and pension income in retirement. TFSA withdrawals are completely tax-free and don't affect income-tested benefits like OAS or GIS.
What are the 2026 contribution limits?
The 2026 TFSA limit is $7,000 (cumulative room since 2009 is $102,000 for those who have never contributed). The 2026 RRSP limit is 18% of your 2025 earned income, up to a maximum of $32,490. Unused room carries forward indefinitely for both.
Can I contribute to both RRSP and TFSA?
Yes — and for many Canadians this is the optimal strategy. If you can only choose one, use the comparison above. If you can max both, do RRSP first if you're in a high bracket, TFSA first if you're in a low bracket.
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View all tools →RRSP vs TFSA — the complete guide
The right choice depends on where you are now and where you expect to be in retirement.
Immediate tax deduction (great when income is high), tax-deferred growth, spousal RRSP income splitting, $60K HBP access, and transfers to RRIF at retirement. Best for: high earners (43%+ bracket) expecting significantly lower retirement income.
Completely tax-free withdrawals (no impact on OAS/GIS clawbacks), contribution room restored when you withdraw, no mandatory drawdown like RRIF, flexible for any goal (not just retirement). Best for: lower income earners, those expecting higher retirement income, and flexible savings goals.
TFSA: $7,000 in 2026. Cumulative room since 2009 is $102,000 if you've never contributed and were 18+ in 2009. RRSP: 18% of prior year earned income, max $32,490. Both have indefinite carry-forward of unused room.
For most Canadians with room in both accounts, the optimal strategy is: RRSP first if you're in a 40%+ bracket (to capture the large deduction), then TFSA for the rest. In retirement, draw from RRSP/RRIF strategically to stay in lower brackets, topping up with TFSA withdrawals which don't affect income-tested benefits.