TFSA vs RRSP vs FHSA calculator
Put in what you can save each year and your tax rate now and later. You'll see how much each account leaves you with after tax, and why one comes out ahead.
TFSA: no deduction now, no tax on the way out. Flexible for any goal.
RRSP: deduction now, taxed as income when you withdraw. Best when your tax rate drops later.
FHSA: deduction now and tax-free out, but only for a qualifying first home.
Money from your paycheque, after tax. The same amount goes into each account so the comparison is fair.
Combined federal and provincial rate on your next dollar of income.
Many people expect this to be lower in retirement. Not everyone is right about that.
TFSA
No deduction now, tax-free later
$79,241
yours to spend, after tax
- You put in
- $60,000
- Balance, no tax owing
- $79,241
RRSP
Most after taxDeduction now, taxed as income later
$87,165
yours to spend, after tax
- RRSP balance before tax
- $79,241
- Tax when withdrawn
- -$15,848
- Invested tax refunds
- $23,772
How to choose, in plain terms
The RRSP versus TFSA debate sounds complicated, but it comes down to one comparison: the tax rate you save at when you contribute against the tax rate you pay when you withdraw. If you get a 30% deduction today and pay 20% in retirement, the RRSP wins. If you're early in your career in a 20% bracket and expect to earn more later, the TFSA wins. If the rates are the same, the math is a tie.
The catch is the refund. An RRSP only pulls ahead if the refund gets invested too. Turn off the refund option above and watch what happens: spent refunds are the most common reason the RRSP disappoints people.
If you're saving for a first home and you qualify, the FHSA is hard to beat. It's the only account that gives you a deduction going in and no tax coming out. A common order for first-time buyers is FHSA first, then TFSA, then RRSP, with employer RRSP matching taking priority over all three because it's free money.
Flexibility matters more than people expect. TFSA withdrawals are tax-free and the room comes back the next January. RRSP withdrawals are added to your income and have tax withheld, and the room is gone for good. If there's a real chance you'll need the money before retirement, that alone can be a reason to favour the TFSA.
Anything before 2009 counts as 2009, when TFSAs started.
Withdrawals made in 2026 come back on January 1, 2027.
Estimated room for 2026
$109,000
$109,000 of total room has built up since 2009.
2026 limits
The numbers to know this year
- TFSA
- $7,000 new room in 2026. $109,000 total if you've been eligible since 2009 and never contributed.
- RRSP
- 18% of last year's earned income, up to $33,810, minus any pension adjustment, plus unused room. Your exact limit is on your Notice of Assessment.
- FHSA
- $8,000 a year and $40,000 lifetime. Up to $8,000 of unused room carries forward, and the account must be used or closed within 15 years.
Questions people ask
Is a TFSA or an RRSP better?
It mostly comes down to your tax rate now compared with your tax rate when you take the money out. If you're in a higher bracket today than you expect to be in retirement, the RRSP usually wins, as long as you invest the refund instead of spending it. If your income is modest now, or you think it'll be higher later, the TFSA usually wins. When the two rates are the same, they come out about even, and the TFSA's flexibility tips it.
Should I open an FHSA if I'm not sure I'll buy a home?
Usually yes, if you qualify. Contributions are deductible like an RRSP and qualifying withdrawals for a first home are tax-free like a TFSA. If you never buy, you can generally transfer the balance to your RRSP without using RRSP room, so the downside is small. Contribution room only starts building once the account is open, which is another reason not to wait.
What are the 2026 contribution limits?
The TFSA limit for 2026 is $7,000, and someone who has been eligible since 2009 and never contributed has $109,000 of total room. The RRSP limit is 18% of last year's earned income up to $33,810, minus any pension adjustment, plus unused room carried forward. The FHSA allows $8,000 a year with a $40,000 lifetime maximum, and up to $8,000 of unused room carries forward to the next year.
What happens if I over-contribute?
For a TFSA or FHSA, CRA charges 1% per month on the highest excess amount until you withdraw it. RRSPs have a $2,000 lifetime cushion before the same 1% monthly tax applies. Remember that TFSA withdrawals only add room back on January 1 of the following year, which is how most accidental TFSA over-contributions happen.
Where do I find my exact contribution room?
Log in to CRA My Account. It shows your TFSA room as of January 1, your RRSP deduction limit, and your FHSA participation room. Your RRSP limit is also printed on your latest Notice of Assessment. The estimates on this page are a starting point, not a replacement for CRA's numbers.
What doesn't this calculator include?
It doesn't model employer RRSP matching (take the match first, it's an instant return), government benefits that shrink as income rises such as OAS, GIS or the Canada Child Benefit, or the RRSP Home Buyers' Plan. It also assumes the same return every year and that your RRSP refund is invested right away, when in reality it arrives the following spring.
This calculator is for planning and education only and isn't tax or investment advice. It uses a single tax rate and a steady return, which real life won't match. Confirm your room with CRA before contributing.
Built for Canadian accounts
See your TFSA, RRSP and FHSA next to everything else
Sumyfi tracks your registered accounts alongside your chequing, credit cards and loans in CAD, so you can see your savings goals and net worth move together. Read more in the RRSP tracking guide, or run the net worth calculator next.