Swift Accounting & Business Solutions Ltd.
2440 Kensington Rd NW, Calgary, AB T2N 3S1
(403) 999-2295 · mailbox@swiftltd.ca
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TFSA vs RRSP Calculator (2026)
Compare saving in a TFSA with saving in an RRSP at the same cost each year. See which leaves you with more after tax in retirement.
Fill in every box to compare the two accounts.
More money after tax with
TFSA
- Deposit each year
- Balance at the end
- Tax on withdrawal
RRSP
- Deposit each year
- Refund added to it
- Balance at the end
- Tax on withdrawal
Estimate based on 2026 rules. Not tax advice.
How it's calculated
- Both options cost the same each year. The RRSP deposit is larger because your tax refund goes into the plan too, and the deposit is solved so that its cost after the refund matches the TFSA amount.
- The refund rate is the average tax saved on the deposit, so a deposit that crosses a tax bracket gets a lower average than your top rate.
- RRSP withdrawals are taxed at the rate on the last dollar of your expected retirement income. The TFSA balance comes out tax free.
- Deposits are made at the end of each year and earn the same return in both. Today's tax rules are used throughout. Inflation, age and pension credits, and OAS clawbacks are not included.
- A warning appears when the TFSA amount is above the $7,000 yearly limit for 2026 or the RRSP deposit is above the maximum for your income.
Frequently asked questions
When does an RRSP beat a TFSA?
An RRSP tends to win when your tax rate now is higher than your rate in retirement, because the deduction is worth more than the tax on withdrawal. A TFSA tends to win when your rate now is lower.
What is the TFSA limit for 2026?
The annual TFSA limit is $7,000 for 2026. Unused room carries forward, and money you withdraw is added back to your room the following year.
Why does the RRSP deposit cost the same as the TFSA amount?
To compare fairly, both options take the same amount out of your pocket. The RRSP deposit is bigger because your tax refund is added to it.
Does this include OAS and GIS clawbacks?
No. RRSP withdrawals count as income, so they can trigger the OAS clawback or reduce the GIS. TFSA withdrawals do not. That favours the TFSA more than this estimate shows.
What return should I enter?
Use a long-run return after fees that you think is realistic for your investments. Both accounts get the same return, so it changes the totals more than it changes the winner.
Talk to a Swift accountant
Which account to fill first depends on your income, your employer plan and your goals. We can build a tax plan around your numbers.