RRSP or TFSA: which comes out ahead at my tax rates?
It mostly comes down to two tax rates: yours today, and yours when the money comes out. If your rate will be lower in retirement, the RRSP usually wins. If it'll be higher, the TFSA usually comes out ahead. If it's the same, they come out about even before other factors. Growth affects both equally.
The rates shown are examples only. Enter your own.
Common questions
Does this assume I invest the RRSP refund?
Yes. The comparison only holds if the refund is saved too, not spent.
What else changes the answer?
OAS recovery tax, income-tested benefits, pension income splitting, and whether you'll need the money before retirement. TFSA withdrawals don't count as income; RRSP withdrawals do.
Can I do both?
Often the answer is both, in a particular order. That order is the planning part.
It's rarely either-or.
Your rate in retirement depends on CPP, OAS, pensions and RRIF minimums together. We'll work out the order.
More tools
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Open →Figures as at November 2026. Sources: Canada Revenue Agency, Service Canada, Income Tax Act.
Illustrative arithmetic only. Figures set by legislation can change; verify current rules before relying on any result. Educational only. Not tax, legal, or investment advice. Confirm with your accountant before acting. Mutual Funds and Segregated Funds provided by the Fund Companies are offered through Worldsource Wealth Management Inc., sponsoring mutual fund dealer. Other Products and Services are offered through David Creighton, Lindsay Smith, John Creighton, Matthew Smith, Darroll Powe, and Creighton Financial Group.