Accounts & Tax · 2026 calculator
RRSP vs TFSA calculator
The winner comes down to one thing: your tax rate now versus in retirement. Enter both and we’ll show which account leaves you with more after tax — using the same verified 2026 brackets as our income tax calculator.
Brackets verified at canada.ca / CRA · 2026-06-13
Your numbers
The winner
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RRSP
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after-tax at withdrawal
TFSA
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tax-free
Marginal rate now—
Marginal rate in retirement—
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Frequently asked questions
Is it better to invest in an RRSP or a TFSA?
It comes down to one comparison: your marginal tax rate now versus in retirement. If your rate will be lower in retirement, the RRSP wins — you deduct at a high rate and withdraw at a low one. If it’ll be higher, the TFSA wins. If they’re equal, the after-tax result is identical. Investment growth actually cancels out of the math, so the rates are what decide it.
Why does the growth rate not change the answer?
Because both accounts grow tax-free, the growth factor multiplies both sides of the comparison equally and cancels. What’s left is (1 − retirement rate) vs (1 − today’s rate). A higher return makes the dollar difference bigger, but it never flips which account wins — only your two marginal rates do that. The calculator shows the dollar gap so you can see how much it matters.
What about the RRSP refund?
This is the catch most people miss. To compare fairly, the RRSP refund must be reinvested (ideally in a TFSA). If you spend the refund, the RRSP’s advantage shrinks or disappears. The math here assumes the RRSP contribution is pre-tax money and the TFSA gets the equivalent after-tax amount — i.e. the refund is effectively reinvested.
When should I use both?
Most people should. A common order: capture any employer RRSP match first (free money), favour the TFSA in low-income years, and favour the RRSP in peak-earning years where the deduction is worth the most. TFSA withdrawals also don’t count as income, so they never trigger OAS clawback — useful for managing retirement income. See the full RRSP vs TFSA guide.
Educational planning calculator, not tax advice. Marginal rates use 2026 federal + provincial brackets verified at the government source (2026-06-13); the “rate now” is the rate at your stated income (a real RRSP deduction comes off your top dollars). It assumes the RRSP refund is reinvested and ignores OAS clawback, contribution-room limits and employer matches. Confirm your situation before acting.