TFSA vs RRSP
Traduction en cours — le texte ci-dessous est temporairement en anglais.
Both shelter your investments from tax, but in mirror-image ways. Choosing well can be worth tens of thousands over a lifetime — and it comes down mostly to one question.
The mirror-image tax treatment
An RRSP contribution is deductible now and taxed on withdrawal. A TFSA contribution isn't deductible, but nothing is ever taxed again. If your tax rate is the same now and at withdrawal, the two produce an identical after-tax result — the difference is entirely about which rate is higher.
À lire aussi : RRSP growth calculator · TFSA growth calculator. Pour les règles officielles, consultez CRA — RRSPs and related plans.
The one question that decides it
Will your marginal tax rate be higher now or in retirement?
- Higher now (peak earning years): the RRSP deduction is worth more — lean RRSP.
- Higher later, or income is low/variable (students, early career, gig income): lean TFSA.
- Not sure: the TFSA's flexibility and benefit-friendliness make it a safe default.
It's not either/or
Most Canadians use both. A common pattern: RRSP to lower a high income, then TFSA for everything else — and, for a first home, the FHSA before either.
Questions fréquentes
Can I lose RRSP room by withdrawing?
Yes — unlike the TFSA, RRSP withdrawals (outside the Home Buyers' Plan or Lifelong Learning Plan) are taxed and the room is gone permanently.
Sources
Information générale destinée aux lecteurs canadiens; ne constitue pas un conseil financier, fiscal ou de placement personnalisé. Les chiffres reflètent la date de révision; confirmez les limites et règles en vigueur auprès de l'ARC ou d'un professionnel qualifié avant d'agir.