RRSP vs TFSA in Alberta
For Alberta residents at $100,000 income contributing $7,000/year for 30 years at 6% return, the break-even retirement marginal rate is 31.0% — below that, RRSP wins; above, TFSA.
Best choice for your inputs
RRSP wins by $28,461
Current marginal rate 31.0% vs estimated retirement 25.0%.
Your current marginal rate (31.0%) is higher than your estimated retirement marginal rate (25.0%). The RRSP deduction is worth more now than the eventual withdrawal tax.
Your Situation
Projected after-tax balance over 30 years
| RRSP | TFSA | |
|---|---|---|
| Ending balance | $474,349 | $474,349 |
| Refund reinvested (side TFSA) | $147,048 | — |
| Withdrawal tax @ 25% | −$118,587 | $0 |
| Net after-tax | $502,810 | $474,349 |
Break-even retirement marginal rate
With refund reinvestment, RRSP and TFSA produce identical net outcomes when your retirement marginal rate equals your current marginal rate of 31.0%. Below that, RRSP wins; above it, TFSA wins.
Alberta-specific context
Alberta's 10% flat provincial rate (rising to 15% only above $355,845) plus Canada's highest provincial Basic Personal Amount of $22,948 (2026) make it the lowest-tax province for most income bands. The combined marginal rate at $100,000 in Alberta is 30.5% (20.5% federal + 10% provincial), versus 29.65% in Ontario at the same income — the gap narrows because Ontario's lower bracket cutoffs catch up. Alberta's RRSP deferral value is therefore lower at typical income levels: a $7,000 RRSP contribution refunds about $2,135 vs ~$2,075 in Ontario. The TFSA wins more often in Alberta unless retirement income is genuinely expected to drop into the lowest combined bracket (~25%).
Worked example: $100,000 income, $7,000/year
- Current combined marginal rate: 31.00%
- Annual RRSP refund (reinvested): $2,170
- RRSP ending balance after 30 years (before tax): $553,407
- RRSP withdrawal tax @ 25%: −$138,352
- RRSP net (with reinvested refund): $586,612
- TFSA ending balance after 30 years (tax-free): $553,407
- Verdict: RRSP wins by $33,204
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Other Provinces
Reflects 2026 tax year rates.