Calculator

TFSA vs RRSP Comparison

Compare side-by-side to find which account gives you more after-tax value, based on your income and province.

Your Inputs

$60,000
Your gross employment income before deductions
Used to calculate your combined marginal tax rate
29.6%(federal 20.5% + provincial 9.2%)
$5,000
2026 RRSP max: $33,810 · TFSA annual limit: $7,000
20 years
How long until you plan to withdraw
6%
Historical average: ~6–7% for balanced portfolio
30%
The rate you expect when withdrawing RRSP funds
Based on your inputs
The TFSA gives you $1,482 more at withdrawal
After 20 years · 6% annual return · Ontario
This is a simplified comparison. Your situation may differ.
Better
TFSA
Tax-Free Savings Account
Your Contribution$5,000
Tax RefundN/A
Total Invested$5,000
Future Value$16,036
Tax on Withdrawal$0
After-Tax Value$16,036
RRSP
Registered Retirement Savings Plan
Your Contribution$5,000
Tax Refund+$1,483
Total Invested$6,483
Future Value$20,790
Tax on Withdrawal-$6,237
After-Tax Value$14,553

Growth Over Time

TFSA
RRSP (after tax)
RRSP (gross)
YearTFSA ValueRRSP GrossRRSP After Tax
0$5,000$6,483$4,538
2$5,618$7,284$5,099
4$6,312$8,184$5,729
6$7,093$9,196$6,437
8$7,969$10,332$7,232
10$8,954$11,609$8,126
12$10,061$13,044$9,131
14$11,305$14,656$10,259
16$12,702$16,468$11,527
18$14,272$18,503$12,952
20$16,036$20,790$14,553

TFSA vs RRSP — Quick Guide

🛡️ TFSA

Contribute with after-tax dollars. Investments grow tax-free, and withdrawals are completely tax-free.

Better when:
  • You expect a higher tax rate in retirement
  • You have a lower current income
  • You want flexible, tax-free withdrawals
TFSA Explained for Newcomers
📋 RRSP

Contributions are tax-deductible. Investments grow tax-deferred, but withdrawals are taxed as income.

Better when:
  • You expect a lower tax rate in retirement
  • You have a higher current income
  • You want an immediate tax refund
RRSP Explained for Newcomers
View full glossary of Canadian financial terms

Saving for a Home?

Check out the mortgage comparison tool — and explore how a First Home Savings Account (FHSA) combines the best of TFSA and RRSP for first-time homebuyers.

Mortgage Calculator
Important Disclaimer

This calculator provides estimates for educational purposes only and is not financial advice. Tax rates are based on 2026 CRA published brackets and may not reflect your complete tax situation. The comparison assumes the RRSP refund is reinvested, uses a constant rate of return, and does not account for employer matching, pension adjustments, or other deductions. Consult a qualified financial advisor for personalized guidance. Tax bracket data sourced from the Canada Revenue Agency, effective January 1, 2026.

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