MoneyPilot Canada
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RRSP vs. TFSA Calculator Canada

Compare simplified RRSP and TFSA outcomes using your tax rate today, expected tax rate when you withdraw, investment growth and time horizon. Built for Canadian retirement-planning scenarios.

Your numbers

This is money coming out of your pocket today.
New • 2026 official tax brackets

Estimate the tax rates for me

Instead of guessing a tax rate, enter your province and income assumptions. MoneyPilot uses the official 2026 federal and provincial/territorial tax brackets to estimate the rates used in this comparison.

Use the province/territory where you expect to be resident for tax purposes.
If you only know your salary, you can use salary as a rough proxy.
Use today's dollars for a simple comparison. Examples can include pension, CPP/OAS and other taxable income.
The estimator calculates the incremental bracket-based tax on this withdrawal.
Official sources: CRA 2026 federal & provincial/territorial tax brackets ↗ • Revenu Québec 2026 rates ↗
Auto-filled by the estimator above, or enter your own planning assumption.
Auto-filled using the estimated average tax on your annual RRSP/RRIF withdrawal. You can override it manually.
Example only — investment returns are not guaranteed.
Investing the tax savings makes the RRSP comparison much fairer.
Tax estimator methodology

How the automatic tax-rate estimate works

MoneyPilot calculates tax across the official 2026 federal and provincial or territorial income brackets. For the current RRSP estimate, it compares bracket-based tax before and after a contribution equal to the amount you entered as money available to invest. For retirement, it compares bracket-based tax before and after the annual RRSP/RRIF withdrawal you entered.

This means a withdrawal that crosses more than one tax bracket gets an average estimated tax rate on that withdrawal, rather than simply applying the highest bracket to the entire amount.

For Quebec, the federal portion also reflects the 16.5% Quebec federal tax abatement. The estimator intentionally remains a planning tool: personal credits, provincial surtaxes, health premiums, age/pension credits, OAS recovery tax, GIS or other benefit interactions, deductions and future tax changes can make your actual tax rate different.

CRA: 2026 tax rates and brackets ↗   Revenu Québec: 2026 income-tax rates ↗

How to interpret the result

When an RRSP or TFSA may have the advantage

SituationOften favoursWhy
Your marginal tax rate is higher today than when you expect to withdrawRRSPThe deduction is received at the higher tax rate while the withdrawal may be taxed at a lower rate.
Your tax rate is lower today and may be higher laterTFSAYou give up a relatively small deduction today and preserve tax-free withdrawals later.
You may need flexible access to the money before retirementTFSATFSA withdrawals are generally tax-free and the withdrawn amount is normally added back to contribution room the following calendar year.
You receive a meaningful RRSP deduction and invest the tax savingsRRSP can improveReinvesting the tax savings is important when comparing equal out-of-pocket costs.

This is a simplified educational comparison. Actual contribution room, pension adjustments, benefits, withholding tax, withdrawal timing and future tax law can change the outcome.

Common Canadian scenarios

RRSP vs TFSA by income

Income alone does not decide the answer, but it can affect the value of an RRSP deduction because marginal tax rates generally rise with taxable income.

Around $60,000 income

A TFSA can remain attractive when flexibility matters or when your current marginal tax rate is not much higher than the rate you expect in retirement.

See a $60k Ontario take-home-pay example →

Around $80,000 income

The RRSP deduction becomes more valuable as your marginal tax rate increases. Compare both accounts rather than assuming one always wins.

See an $80k Ontario take-home-pay example →

Around $100,000 income

An RRSP can become more compelling when today's marginal tax rate is meaningfully above the tax rate you expect when withdrawing.

See a $100k Ontario take-home-pay example →

Around $120,000+ income

Higher current marginal rates can increase the immediate value of an RRSP deduction, especially when the tax savings are reinvested.

See a $120k Ontario take-home-pay example →

RRSP vs TFSA: quick questions

Is an RRSP always better at a high income?

No. A higher marginal tax rate can make the deduction more valuable, but future tax rates, withdrawal needs, employer pensions, government benefits and how you use the tax savings all matter.

Is a TFSA always better for younger Canadians?

No. A TFSA is flexible and can be useful when current income is relatively low, but an RRSP may still be valuable when the deduction is useful today or when an employer matching program is available.

Should I invest my RRSP tax refund?

If you are comparing an RRSP and TFSA using the same out-of-pocket cost, reinvesting the RRSP tax savings generally makes the comparison more balanced.

Read the full RRSP vs TFSA guide →   Compare with the FHSA calculator →