Checklists
RRSP or TFSA, and how much does the government give back?
The order matters more than the amount: employer match first, then the account your tax rate favours, then the rest. An RRSP contribution comes with a refund at your marginal rate; a TFSA grows tax-free forever.
Worth knowing before you start
- An RRSP contribution refunds tax at your marginal rate: $10,000 in at 43% gives $4,300 back next spring. The RRSP wins when your tax rate in retirement will be lower than today’s.
- A TFSA is better at lower incomes and for money you may need before retirement. Withdrawals never affect OAS or GIS.
- Saving for a first home? The FHSA is deductible like an RRSP and tax-free out like a TFSA, $8,000 a year to $40,000.
- Unused room carries forward. Check the CRA figure before you contribute, and never exceed it: the TFSA penalty is 1% a month.
The steps, in order
- 1 RRSP, TFSA or FHSA?Which account wins for your income now and later, and the one rate that decides it.Open the rrsp vs tfsa vs fhsa calculator →
- 2 What refund will I get?The refund for any contribution and the amount that brings you down a bracket.Open the rrsp refund calculator →
- 3 How much room do I have?Your TFSA room today, starting from the CRA figure.Open the tfsa room calculator →