What is the 2026 TFSA contribution limit?

The 2026 TFSA annual contribution limit is $7,000 — the third year unchanged at this level. If you were 18 or older in 2009 and have never contributed, your cumulative room is $109,000. Unused room carries forward indefinitely.

What is the 2026 RRSP contribution limit?

For 2026, the RRSP dollar limit is $33,810, or 18% of your previous year’s earned income, whichever is less. Your personal limit appears on your Notice of Assessment from CRA. Maxing this requires having earned roughly $187,833 in 2025.

Which is better — TFSA or RRSP?

Roughly: if your current marginal tax rate is higher than your expected retirement marginal tax rate, RRSP wins. If lower, TFSA wins. If equal, they are mathematically identical, but TFSA offers far more flexibility because withdrawals are tax-free and add back to your contribution room.

Can I have both accounts?

Yes. Most Canadians benefit from contributing to both. A common strategy: max TFSA first for flexibility and tax-free growth, then RRSP for higher tax-deferred growth at higher incomes. Households with one high-earner often split contributions strategically.

What happens if I withdraw from my TFSA?

TFSA withdrawals are tax-free and the withdrawn amount is added back to your contribution room in the following calendar year. RRSP withdrawals are fully taxed as income and the contribution room is permanently lost — except for First Home Buyer Plan and Lifelong Learning Plan, which require repayment.

Canadian Calculators

TFSA vs RRSP Calculator

Compare TFSA and RRSP after-tax returns based on your income, province and retirement plans. Find out which account wins for your situation.

Annual income ($CAD)

Province

Annual contribution ($CAD)

2026 TFSA limit: $7,000 • RRSP limit: $33,810

Current TFSA room ($CAD)

Current RRSP room ($CAD)

Expected annual return 7%

1%15%

Years to retirement 25 yr

140

Retirement income target ($CAD)

Calculating...

Your marginal rate: — Retirement rate: —

TFSA Future Value

—

100% tax-free withdrawal

RRSP After Retirement Tax

—

Net after withdrawal tax

Difference

—

In favour of winner

Total RRSP Tax Refunds

—

Over contribution period

TFSA vs RRSP — Net Value at Retirement

TFSA and RRSP are Canada’s two main tax-advantaged savings accounts, and the question of which to prioritize is one of the most common in Canadian personal finance. The honest answer is: it depends. Your current marginal tax rate, expected retirement tax rate, need for flexibility, and whether you actually invest the RRSP tax refund all matter.

This calculator compares both options side by side using your actual numbers, the 2026 contribution limits ($7,000 for TFSA, up to $33,810 for RRSP), and current federal and provincial tax brackets. No more guessing — see exactly which account leaves more money in your pocket at retirement.

How it works

Enter your current income, province, planned annual contribution, and target retirement age. The calculator applies 2026 federal and provincial marginal tax rates to determine your current rate and projects your retirement rate based on expected withdrawal income.

For the RRSP path, contributions reduce taxable income today — generating a tax refund that we assume you also invest, which is required for a mathematically fair comparison. Withdrawals in retirement are fully taxed at your retirement marginal rate. For the TFSA path, contributions use after-tax dollars but all growth and withdrawals are tax-free forever. The output shows your true after-tax wealth at retirement in each case.

Frequently asked questions

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