The rule of thumb
If your tax rate in retirement will be lower than today, the RRSP wins. If it will be the same, they tie. If it will be higher (or the withdrawal would trigger the OAS clawback or reduce GIS), the TFSA wins. 2026 limits: TFSA $7,000; RRSP 18% of 2025 earned income up to $33,810.
FAQ
Is an RRSP better than a TFSA?
Only if your tax rate when you withdraw is lower than when you contribute. With $85,000 of income now (29.7% marginal in Ontario) and $50,000 in retirement (19%), the RRSP leaves about $2,275 more on $5,000 over 25 years.
Sources (checked Nov 6, 2026): CRA tax rates and income brackets 2026; T4127 Payroll Deductions Formulas (2026); provincial budgets 2026. CRA TFSA and RRSP 2026 limits.