RRSP vs TFSA

    Same pre-tax dollars, two accounts

    The RRSP gets the full amount (its refund is reinvested); the TFSA gets what's left after tax today.
    Try the retirement tax tool to estimate yours.
    Include OAS recovery (+15%) or lost GIS if RRIF income could trigger them.
    RRSP after tax
    $17,778
    after $5,926 tax on withdrawal
    TFSA
    $16,593
    from $4,900 contributed
    Ahead
    RRSP
    by $1,185

    After-tax value over time

    $0$5k$10k$15k$20k0y4y8y12y16y20y24y
    RRSP (after withdrawal tax)TFSA
    RRSPTFSA
    Invested$7,000$4,900
    Tax refund today$2,100—
    Value after 25 years$23,704$16,593
    Tax on withdrawal$5,926$0
    After-tax value$17,778$16,593

    The rule of thumb this shows: when your tax rate on withdrawal equals today's rate, both accounts end up the same. A lower rate later favours the RRSP; a higher one (including OAS recovery tax or GIS reductions from RRIF income) favours the TFSA. 2026 limits: RRSP $33,810 (18% of prior-year earned income), TFSA $7,000. Room, refunds and employer matching aren't modelled.

    RRSP vs TFSA · Powered by RetirementPlanner.ca · MITEY. Educational estimates, not financial advice.