Free calculator · Canada · 2026 limits
TFSA vs RRSP vs FHSA
which one first?
Put in what you can save each year and your tax rate now and later. The calculator shows what you would actually keep in each account.
Short answer: an RRSP wins when your tax rate today is higher than it will be when you withdraw. A TFSA wins when your tax rate later will be the same or higher, and it keeps your money flexible. If you are saving for a first home, the FHSA usually beats both: the deposit is tax-deductible like an RRSP and the withdrawal is tax-free like a TFSA.
Marginal rate = federal + provincial rate on your last dollar of income. Look it up for your province before trusting the result.
Turn the answer into a plan
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The three accounts in one table
| TFSA | RRSP | FHSA | |
|---|---|---|---|
| Money going in | Not deductible | Tax-deductible | Tax-deductible |
| Money coming out | Tax-free, any time | Taxed as income | Tax-free for a first home |
| 2026 limit | $7,000 new room ($109,000 since 2009) | 18% of earned income, max $33,810 | $8,000 a year, $40,000 lifetime |
| Best for | Flexible saving, lower tax rate now | Higher tax rate now than in retirement | Buying your first home |
A simple order many Canadians use
- Employer match first. If your job matches RRSP or pension contributions, take all of it.
- High-interest debt next. Paying off a ~20% credit card is a guaranteed return no account can match.
- Buying a first home? Fill the FHSA ($8,000 a year).
- Then compare your tax rates with the calculator above: higher now → RRSP, lower or same → TFSA.
Rules change and everyone's situation differs. This is education, not advice for your situation.
Questions
What are the 2026 contribution limits?
TFSA: $7,000 of new room in 2026, or $109,000 in total if you were eligible since 2009 and never contributed. RRSP: 18% of last year's earned income, up to $33,810 for 2026, plus unused room. FHSA: $8,000 a year and $40,000 lifetime. Check your own room in CRA My Account.
Is a TFSA or an RRSP better?
It depends mostly on your tax rate now versus at withdrawal. Same rate: they end up about the same, as long as you invest the RRSP refund. Higher rate now: RRSP. Lower rate now (early career, low income year): TFSA.
Should I open an FHSA if I might not buy a home?
Many people do, because the money can be moved to an RRSP later without using RRSP room if you never buy. The account can stay open for up to 15 years. Check the current CRA rules before you rely on this.
Does the calculator include employer matching?
No. If your employer matches RRSP or pension contributions, take the match first: it is an instant return the calculator does not show.
Is this financial advice?
No. It is an estimate using a fixed return and the tax rates you enter. Real returns go up and down, and your situation may differ. Use official CRA information or a licensed professional before deciding.
2026 limits: Canada Revenue Agency, as reported by BNN Bloomberg (Dec 31, 2025). The math assumes the RRSP and FHSA tax refunds are invested, a fixed yearly return, and one tax rate at withdrawal.
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