RRSP vs TFSA (and FHSA) Calculator for newcomers in Canada

The annual limit is $7,000. Your total contribution room depends on how many years you've been a tax resident. If you arrived in 2024, your room is $21,000 (2024+2025+2026).

Generally not as a priority. With low income your marginal rate is low, so the RRSP tax savings are small. TFSA is usually a better option until your income exceeds approximately $55,000.

Yes. They are independent accounts with their own limits. You can contribute to all three if you have available contribution room in each.

The CRA charges a 1% monthly penalty on the excess amount. Check your contribution room in CRA My Account before contributing.

Yes, your employer's contribution counts toward your RRSP deduction limit. But it's free money — always contribute at least up to the match maximum.

FHSA is better: you deduct when contributing AND withdraw tax-free. With RRSP HBP you deduct but must repay within 15 years. You can use both together to maximize your down payment.

TFSA is your first choice: it doesn't require prior income, it's flexible, and it grows tax-free. RRSP requires declared income from the previous year to generate contribution room.

You pay taxes on the withdrawn amount. The bank withholds 10%–30% depending on the amount. Plus, you lose the contribution room permanently (it doesn't recover like TFSA).