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
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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