RRSP vs TFSA Calculator Canada 2025

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After-tax wealth comparison • Accounts for OAS clawback • Retirement tax rate matters

The RRSP vs TFSA decision comes down to one key question: will your tax rate be higher now or in retirement? This calculator runs the math on both scenarios so you can see which account builds more after-tax wealth.

RRSP vs TFSA Comparison

Annual Contribution ($)

Years Until Retirement

Current Marginal Tax Rate (%)

Expected Retirement Tax Rate (%)

Annual Investment Return (%)

Invest RRSP Refund in TFSA?

The Core RRSP vs TFSA Rule

RRSP wins when your tax rate now is higher than your retirement tax rate
TFSA wins when your tax rate now is lower than (or equal to) your retirement rate
Both are equal mathematically when tax rates are identical — but TFSA has practical advantages

TFSA Advantages Beyond the Math

Withdrawals don't affect OAS, GIS, or income-tested benefits
No mandatory conversion at age 71 (unlike RRSP → RRIF)
Withdrawals re-create room the following year
No impact on clawbacks or means-tested programs

Who Should Prioritize RRSP?

High earners (over $100,000/year) in their peak earning years who expect lower retirement income. The tax deduction at 40%+ and withdrawal at 25% is a powerful arbitrage.

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Related registered-account guides

Registered accounts overview Best TFSA accounts RRSP guide FHSA guide RESP guide TFSA contribution limits RRSP vs TFSA All Canadian bank bonuses

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