RRSP vs TFSA
Which is better for you? Depends on your income, marginal rate, and goals.
Estimates only — how we calculate
Your Scenario
RRSP — After 15 Years
$188,216
Tax deduction this year: $2,100
+ Reduces taxable income now (at your marginal rate)
+ Lowers AFNI — may increase CCB
+ HBP: withdraw up to $60K for first home
- Taxed on withdrawal (future marginal rate)
- Contribution room limited to 18% of income
TFSA — After 15 Years
$188,216
Tax saved vs taxable account: $24,965
+ Tax-free growth AND tax-free withdrawal
+ Withdrawals don't affect benefits (CCB, OAS)
+ Flexible — withdraw anytime, room restored next year
- No tax deduction on contributions
- $7,000/year limit (2026)
Verdict
At your income level, RRSP likely gives more immediate tax benefit. Consider RRSP first if your marginal rate is above 30%, then TFSA with the tax refund.
This comparison is simplified. Consult a financial advisor for personalized advice.