Equal out-of-pocket comparison
Both options start from the same amount of take-home cash, with the Registered Retirement Savings Plan tax reduction reinvested.
Savings & retirement
Which account could leave me with more after tax?
Compare equal annual out-of-pocket savings while assuming the Registered Retirement Savings Plan tax reduction is also invested.
✓ 2026 rules · Last verified August 2026 · Based on official Canadian sourcesEstimated after-tax advantage
$99,252
Planning estimate — not financial advice.
The Registered Retirement Savings Plan is ahead under these tax assumptions.Compare the detailed amounts below before deciding.
Registered Retirement Savings Plan after tax$496,258
Tax-Free Savings Account value$397,006
Annual Registered Retirement Savings Plan contribution$13,333
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Understand the result
Registered Retirement Savings Plan vs Tax-Free Savings Account
How the estimate is built
Grosses up the Registered Retirement Savings Plan contribution for the entered current tax rate, compounds both accounts, then taxes the Registered Retirement Savings Plan at the entered retirement rate.
What to verify
Contribution room, benefit clawbacks, refund timing, withdrawal flexibility and future tax rates can change the decision.
Recommended next step
Continue the same decision
Use the next calculator to check another part of the same financial question.
Registered Retirement Savings Plan (RRSP)
Estimate tax savings and long-term tax-deferred growth.
Continue →View every calculator in this category →Helpful answers
Frequently Asked Questions
Is it better to contribute to an RRSP or TFSA?
It depends mainly on your current tax rate, expected future tax rate, employer matching, available room and savings goal. RRSP contributions can create a deduction now but withdrawals are taxable, while TFSA contributions are not deductible and qualifying withdrawals are tax-free.
Should I max out my TFSA before my RRSP?
Not always. Someone in a lower tax bracket may prefer TFSA flexibility, while someone receiving an employer RRSP match or facing a high marginal tax rate may benefit from prioritizing RRSP contributions.
At what income does an RRSP become better than a TFSA?
There is no universal salary cutoff. The comparison depends on marginal tax rates now and in retirement, how the RRSP tax saving is used, benefit clawbacks and the need for flexible withdrawals.
Is an RRSP or TFSA better for retirement?
Both can be valuable. RRSPs are designed primarily for tax-deferred retirement savings, while TFSAs provide tax-free withdrawals that do not increase taxable income, which can make them useful for managing retirement cash flow.
Does an RRSP refund make the RRSP better than a TFSA?
Only if the comparison accounts for what happens to the tax saving. Reinvesting the RRSP tax saving can materially improve the RRSP outcome; spending it can make a simplistic comparison misleading.
Official sources and rule record+
Methodology & official sources
How this estimate works
Grosses up the Registered Retirement Savings Plan contribution for the entered current tax rate, compounds both accounts, then taxes the Registered Retirement Savings Plan at the entered retirement rate.
Contribution room, benefit clawbacks, refund timing, withdrawal flexibility and future tax rates can change the decision.
Canada Revenue AgencyTax-Free Savings Account guideView official source →Canada Revenue AgencyRegistered Retirement Savings PlansView official source →
ca.expanded.2026.v1 · Effective 2026-01-01 · 2026 rules · Last verified August 2026 · Based on official Canadian sources