RRSPs and TFSAs, in plain English

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An RRSP and a TFSA are the two registered accounts most Canadians use to save — one gives you a tax break now and taxes you later, the other gives you no break now and never taxes you at all. Between them they hold the retirement savings, the first-home deposit, and the emergency fund of millions of people. These eleven guides explain, in plain English, how each one works, what the limits are for 2026, and what happens when you take money out — with every figure taken from the Canada Revenue Agency.

Start here

The RRSP limit for 2026 is $33,810, or 18% of your 2025 earned income, whichever is less. The TFSA limit for 2026 is $7,000, and the total room built up since 2009 is $109,000 if you were 18 or older and resident in Canada the whole time. The Home Buyers' Plan lets you take up to $60,000 out of your RRSP tax-free for a first home. And an RRSP must be turned into income by 31 December of the year you turn 71.

The two accounts

RRSP vs TFSA: Which Is Better for You? — the tax break now or tax-free later, and how to choose between them.
RRSP Contribution Limits 2026: Room, Deadlines, and the 18% Rule — the $33,810 limit, the 60-day deadline, and where to find your room.
TFSA Contribution Limits 2026: Room, Withdrawals, and Re-Contribution — the $7,000 limit, the $109,000 total, and the January 1 room rule.
RRSP Withdrawals: Tax, Withholding, and When It Makes Sense — fully taxable, room lost for good, and the 10%, 20%, and 30% withholding tiers.
TFSA Withdrawals: Tax-Free Rules and the January 1 Room Rule — tax-free, no withholding, and your room comes back next January 1.

Using them for a goal

Spousal RRSPs: Income Splitting Explained — the 3-year attribution rule, and how couples split retirement income.
The Home Buyers' Plan: Using Your RRSP for a First Home — up to $60,000 tax-free, repaid over 15 years.
The Lifelong Learning Plan: RRSP Withdrawals for Education — up to $10,000 a year for full-time study, repaid over 10 years.
RRIFs Explained: Converting Your RRSP at 71 — the minimum withdrawals, the factor table, and the age-71 deadline.

Taxes and mistakes

RRSPs, TFSAs, and Your Tax Return: Deductions, Slips, and Deadlines — Schedule 7, T4RSP and T4RIF slips, and where your room is shown.
Over-Contributions: RRSP and TFSA Penalties and How to Fix Them — 1% a month on the excess, and the $2,000 buffer that only RRSPs get.

What this site will not do

This site is information only. It does not give personal tax advice, does not tell anyone what to do with their money, and does not recommend any account, fund, or investment. RRSP and TFSA rules depend on your own income, residence, and history, and the limits change — the figures here are for 2026 and were checked against the Canada Revenue Agency on 12 November 2026. For anything complex, speak to a tax professional, and always check the current position on the CRA website.

All figures on this site are for the 2026 tax year unless stated, and were checked against the Canada Revenue Agency on 12 November 2026. RRSPs and TFSAs are Canada-wide: the rules are federal, though Quebec withholding rates differ from the rest of Canada.

General information only. This page explains RRSPs and TFSAs in plain English. It is not tax advice, and it cannot tell you what you should do about your own savings or tax. Always confirm the current limits, rules, and your own position on the Canada Revenue Agency website or with a tax professional before you act, and get professional advice for anything complicated. Contact: hello [at] tapetoolhq.com.