RRSP vs TFSA Calculator 2026: Compare Tax Refunds

Province

Gross income

Gross retirement income i

This value is used to estimate tax on future RRSP withdrawals.

Savings budget (before tax)

One pre-tax budget is compared: RRSP gets pre-tax dollars, TFSA gets after-tax dollars.

Hours per week

h/week

Investment horizon

years

Annual return

Inflation

Reinvest RRSP annual tax refund

TFSA final value (after tax)

RRSP strategy total value (after tax)

Advantage (RRSP - TFSA)

Verdict

Calculations apply standard annual TFSA and RRSP limits (excluding past carry-forward room) and do not account for complex tax variables like CPP/OAS clawbacks or pension splitting. The non-registered benchmark assumes returns are taxed annually at your current marginal rate.

After-tax value over time

Final value comparison (RRSP vs TFSA, non-registered benchmark)

How this RRSP vs TFSA model works

The calculator starts from one pre-tax savings budget and compares RRSP and TFSA over your investment horizon. Amounts entered by pay period are annualized first (annual, monthly, biweekly, weekly, or hourly with hours/week).

Same starting budget: RRSP receives pre-tax dollars; TFSA receives the after-tax equivalent.
Current marginal rate: Used to estimate RRSP annual refund and TFSA equivalent contribution.
Retirement taxable income input: Used to estimate tax impact on RRSP withdrawals.
Contribution limits: Annual RRSP room and indexed TFSA yearly limits are applied.
Refund reinvest toggle: When enabled, each annual RRSP refund is compounded at the same return.

Use this model as a planning tool. For filing decisions, validate assumptions with your Notice of Assessment and a tax professional.

How to read your result

Verdict first: It tells you which strategy leads in your scenario (or if outcomes are close).
Why line: Summarizes the main drivers: current vs retirement tax rate, refund reinvestment, and limits.
Non-registered bar: This is a secondary benchmark, not the main RRSP vs TFSA decision.

This is an estimate, not a full tax return simulation. Carried-forward RRSP/TFSA room and all credits/benefits are not fully modeled.

FAQ - RRSP vs TFSA

What is the main difference between an RRSP and a TFSA?

The major difference lies in when you pay taxes. RRSP contributions are tax-deductible (you get a tax refund for the contribution year), but your future withdrawals will be taxable. Conversely, a TFSA is funded with after-tax money, but all your investment income and withdrawals will be 100% tax-free.

Why is the TFSA contribution lower than the RRSP contribution?

In our tool, the starting amount is a pre-tax budget. The RRSP accepts gross dollars (pre-tax), while the TFSA receives the net equivalent (after-tax) of that same budget.

What happens if I reinvest the RRSP tax refund?

The model invests each annual tax refund at the same expected rate of return, and adds this compounded amount to the final value of your total RRSP strategy.

When can a TFSA outperform an RRSP?

A TFSA generally takes the lead if your marginal tax rate at retirement is higher than your current rate, or if you choose not to reinvest your RRSP tax refunds.

RRSP vs TFSA calculator 2026