Your personal AI for understanding and tracking your personal finance.
Your personal AI for understanding and tracking your personal finance.
🍁 RRSP vs TFSA Sorter
Which account should get your next dollar? Answer 5 quick questions to find out.
It depends on your tax bracket. If you're in a high bracket now and expect lower income in retirement, RRSP first.
If you're in a low bracket or want flexible access, TFSA first. Many Canadians benefit from using both accounts.
The 2026 RRSP contribution limit is 18% of your 2025 earned income, up to a maximum of $33,810 — up from $32,490 for 2025. The CRA has already published $35,390 for 2027.
Unused room carries forward from previous years, so check your CRA Notice of Assessment for your exact limit.
The TFSA annual limit for 2026 is $7,000 — unchanged since 2024. If you were 18 or older in 2009, your total lifetime room is up to $109,000 (assuming no contributions made).
The 2027 limit rises to $7,500, taking lifetime room to $116,500; that figure follows from the CRA's inflation-indexing formula applied to CPI already published, though the CRA does not formally announce it until around November 2026. Unused room also carries forward indefinitely.
Yes, but withdrawals are added to your taxable income and subject to withholding tax (10-30%). Exceptions: Home Buyers' Plan ($60,000 for first home, repayable over 15 years) and Lifelong Learning Plan ($20,000 for education).
Yes! TFSA withdrawals are completely tax-free and don't count as income.
This means they don't affect income-tested benefits like OAS, GIS, or the Canada Child Benefit. The withdrawal amount is added back to your contribution room the following year.
Your RRSP refund equals your contribution × your marginal tax rate. For example, a $10,000 RRSP contribution at a 30% marginal rate gives you a $3,000 tax refund.
The key is what you do with that refund — reinvesting it amplifies the RRSP advantage significantly.
