Tax Guide/Saving and investing
RRSP vs. TFSA
Updated November 4, 2026
Many people use both. Your tax rate now and later usually decides the priority.
| Often favours an RRSP | Often favours a TFSA |
|---|---|
| Your tax rate is higher now than it will be later | Your tax rate is lower now than it will be later |
| You want a deduction this year | You may need the money before retirement |
| You plan to use the HBP | You expect income-tested benefits in retirement |
| Your employer matches contributions | You have used your RRSP room |
An employer match is usually worth taking first, because it is added pay. Saving for a first home? Look at the FHSA too.