Canada RRSP & TFSA Calculator
Find your 2026 RRSP contribution room and TFSA limit, plus the tax savings an RRSP contribution creates.
What this calculator does
Calculates your new RRSP contribution room for the year based on last year's earned income, the flat TFSA limit everyone gets, and the immediate tax savings an RRSP contribution creates at your marginal rate.
Who this is for
Canadian residents planning their annual RRSP or TFSA contributions, anyone deciding how to split savings between the two account types, or people wanting to see the immediate tax refund impact of an RRSP contribution.
How this calculator works
RRSP room is 18% of last year's earned income, capped at the annual dollar limit ($33,810 for 2026). Every dollar contributed to an RRSP is deducted from your taxable income, so the tax saved is roughly your contribution multiplied by your marginal tax rate. The TFSA limit for 2026 is a flat $7,000 for everyone, regardless of income, and any unused room carries forward indefinitely.
Worked example
$80,000 earned income last year, 30% combined marginal tax rate: RRSP room = 18% × $80,000 = $14,400 (well under the $33,810 annual cap, so the full 18% applies). Contributing the full $14,400 to an RRSP would save roughly $14,400 × 30% = $4,320 in tax this year. The TFSA limit, regardless of this income level, is simply the flat $7,000 for 2026.
RRSP room vs. TFSA limit
Run the calculator above to compare your RRSP room against the flat TFSA limit.
Common mistakes
- Assuming TFSA room scales with income. Unlike RRSP room, the TFSA limit is the same flat amount for every Canadian resident 18+, regardless of earnings.
- Forgetting unused room carries forward. Both RRSP and TFSA unused contribution room accumulates indefinitely — check your CRA My Account for your real total available room, which is often higher than just this year's new room.
- Choosing RRSP over TFSA (or vice versa) without considering your tax bracket. RRSPs generally make more sense at higher marginal rates now vs. retirement; TFSAs make sense when you expect a similar or higher rate later. See the guide linked below for the fuller decision framework.
- Forgetting RRSP withdrawals are taxed later. The tax saved now isn't free money — RRSP withdrawals in retirement count as taxable income, unlike TFSA withdrawals which are always tax-free.
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Frequently Asked Questions
Is the RRSP tax saving "free money"?
Not exactly — it's a tax deferral, not a permanent tax break. The contribution lowers your taxable income now, but withdrawals in retirement are taxed as regular income. It works best when your tax rate in retirement is lower than your rate today.
Should I prioritize RRSP or TFSA?
It generally depends on your current vs. expected future tax bracket — RRSPs tend to favor high earners now who expect a lower rate in retirement, while TFSAs suit lower earners or anyone uncertain about future rates, since withdrawals are always tax-free. See the linked guide for the full framework.
Does unused RRSP or TFSA room expire?
No, both carry forward indefinitely. If you haven't maximized your room in past years, your actual available room is likely higher than this year's new room alone — check your CRA My Account for the exact figure.
Is the TFSA limit the same for everyone?
Yes — unlike RRSP room, which scales with your earned income, the TFSA dollar limit ($7,000 for 2026) is identical for every eligible Canadian resident regardless of how much they earn.