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💰 Tax Planning

Tax Savings Estimator

A tax savings estimator shows you how much Canadian tax you can save by contributing to RRSP, TFSA, FHSA, or claiming deductions like childcare, moving expenses, or medical expenses. Use it to plan your year-end tax strategy, decide between RRSP vs TFSA contributions, or estimate the value of an FHSA for a first-time home purchase.

Enter your income, current contributions, and province. We'll show the tax savings of each strategy side-by-side, the breakeven point, and the optimal contribution mix. The estimator uses 2026 federal and provincial brackets, including the new $40,000 FHSA lifetime limit and the $7,000 annual TFSA limit.

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Disclaimer: This calculator provides educational estimates only and is not tax, legal, or financial advice. Tax laws change frequently. For 2024 federal brackets only — does not include state taxes, AMT, or phase-outs. Consult a CPA or tax professional for personalized guidance.

Frequently Asked Questions

RRSP or TFSA — which is better?

Depends on your tax bracket. If your current marginal rate is higher than your retirement rate (true for most earners), RRSP is better. If your retirement rate is higher or equal (rare for most people), TFSA is better. A common rule: max TFSA first (because of flexibility), then RRSP.

What is an FHSA?

The First Home Savings Account (FHSA) is a Canadian account introduced in 2023. It combines the best of RRSP (tax-deductible contributions) and TFSA (tax-free withdrawals for a first home). Annual limit $8,000, lifetime limit $40,000. If you don't buy a home, you can roll the FHSA into an RRSP or RRIF without tax consequences.

When should I contribute to my RRSP?

Anytime, but the deadline for the previous tax year is 60 days after December 31 (typically March 1). Contribute early in the year if you can — contributions made in January 2026 are deductible on your 2025 return, but they also start growing tax-sheltered for an extra year. Many people contribute monthly via payroll deduction.

How much should I contribute to my TFSA?

As much as you can, up to your cumulative contribution room. The 2026 annual limit is $7,000. If you've been eligible since 2009 (age 18+), your cumulative room is now $102,000. TFSAs are best for short-to-medium-term goals (emergency fund, down payment, vacation) and for money you'll need before retirement.

Can I claim both RRSP and FHSA in the same year?

Yes. They're independent accounts with separate contribution rooms. Maxing both is a powerful tax strategy for first-time home buyers — combined $15,000/year in deductible contributions.