Which leaves you more after tax: TFSA or RRSP?
An RRSP gives you a tax deduction now and taxes withdrawals later. A TFSA uses after-tax money but grows and comes out tax-free. The winner mostly depends on whether your tax rate is higher now or in retirement.
Assumptions
- Uses 2026 federal + Ontario bracket rates (marginal rate only; no surtax, health premium, credits or clawbacks like OAS/GIS).
- RRSP: the full pre-tax amount is invested; withdrawal taxed at your marginal rate on retirement income.
- TFSA: the same amount minus today's tax is invested; withdrawals are tax-free.
- 2026 limits: TFSA $7,000; RRSP 18% of prior-year earned income up to $33,810.
General information, not financial advice. This calculator gives rough estimates from simplified assumptions. It does not know your full situation. Check with a qualified professional and the official sources before making decisions.
Sources
- Canada.ca: Current year tax rates and income brackets (2026)
- Canada.ca: T4032-ON Payroll Deductions Tables, Jan 2026 (Ontario rates)
- Canada.ca: MP, DB, RRSP, DPSP, ALDA, TFSA limits
- Canada.ca: Calculate your TFSA contribution room
Figures checked October 16, 2026. Rules and limits change; confirm with the source before acting.