The TFSA-versus-RRSP debate gets complicated fast, but the core question is simple: is your tax rate likely higher now, or in retirement?
A rough rule of thumb
If your rate is higher today, the RRSP deduction is worth more now. If it's likely higher later, the TFSA's tax-free withdrawals win.
- Higher earners often lean RRSP first for the immediate deduction.
- Early-career or lower-income years often favour the TFSA.
You don't have to pick permanently — the right split usually shifts as your income does.
