Contribution Tool

TFSA or RRSP – which first?

Answer a few questions about your income and goals. Get a clear breakdown of which account to prioritise for tax efficiency – based on your actual numbers, not a blanket rule.

Your knowledge level
1
Your situation
$
Your total income before taxes – the number on your offer letter or T4.
Gross employment income (before any deductions)
Your current age. Affects how many years your investments can grow.
2
Home buying
Have you never owned a home, or not owned one in the last 4 years?
3
Additional details
Affects whether it's better to build RRSP room now or later
If yes, always max the match first – it's an instant 100% return
High retirement income makes RRSP withdrawals less attractive (taxed at high rates)
3
Projection settings
$
How much you're planning to put away each month.
Your personalised recommendation
–
Factor
TFSA
RRSP
Contributions
After-tax dollars No immediate tax break – you contribute money you've already paid tax on.
Pre-tax dollars You get a deduction – reduces your taxable income and generates a refund.
Withdrawals
Tax-free, any time Withdraw whenever you want with no tax owing. Room is restored the following January.
Taxed as income Withdrawals count as income in the year you take them – room is not restored.
Government benefits impact
No impact TFSA withdrawals don't affect OAS, GIS, or income-tested benefits. ✓ Better
Counts as income RRSP/RRIF withdrawals can reduce OAS and GIS in retirement.
Best for your income
–
–
Flexibility
Very flexible No age limit, no mandatory conversion. Withdraw for any reason with no penalty. ✓ Better
Locked toward retirement Must convert to RRIF by age 71. Early withdrawals are taxed (and room is lost).

Projected growth over 20 years

Based on your monthly contribution amount.
Invested (~8% avg annual return) –
Just saved (~3.5% HISA, no market risk) –
Put the invested amount inside your TFSA or RRSP – the account wrapper doesn't change the growth rate, but it removes tax on gains and withdrawals.

Canadian context

Ready to open an account?
Start putting your plan into action
These are accounts we'd use ourselves – low fees, built for Canadians.
TFSA · RRSP · FHSA · Investing
Wealthsimple
No-fee registered accounts with automatic investing. Best for beginners and those who want simplicity.
Open an account
Self-directed · RRSP · TFSA · FHSA
Questrade
Low-cost self-directed investing. Buy ETFs commission-free. Good for those who want more control.
Open an account
HISA · TFSA savings
EQ Bank
High-interest savings with no monthly fees. Good for the cash portion of your TFSA.
Open an account

How this tool works

01

Your numbers, not averages

The recommendation is based on your income, province, age, and goals – not a generic income bracket rule.

02

Tax efficiency, not investment advice

This tool helps you decide which account to contribute to first. What you invest in inside those accounts is a separate decision.

03

2026 tax rates

All calculations use confirmed 2026 federal and provincial brackets, including the Ontario surtax where applicable.

* This tool is for educational purposes only and does not constitute financial advice. Projections assume 8% average annual nominal return (broad index fund approximation) and are not guaranteed. TFSA, RRSP, and FHSA contribution limits apply – verify your personal room via CRA My Account. Tax calculations use 2026 published federal and provincial brackets including individual provincial basic personal amounts and Ontario surtax. RRSP deduction room depends on your prior-year earned income (18% of prior year's earned income, up to the annual limit of $32,490 for 2026). Consult a registered financial advisor (CFP) before making significant financial decisions. Referral links on this page may earn a commission if you sign up, at no additional cost to you.