RRSP vs TFSA in New Brunswick
For New Brunswick residents at $75,000 income contributing $5,000/year for 30 years at 6% return, the break-even retirement marginal rate is 35.0% — below that, RRSP wins; above, TFSA.
Best choice for your inputs
RRSP wins by $47,435
Current marginal rate 35.0% vs estimated retirement 25.0%.
Your current marginal rate (35.0%) 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) | $166,022 | — |
| Withdrawal tax @ 25% | −$118,587 | $0 |
| Net after-tax | $521,784 | $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 35.0%. Below that, RRSP wins; above it, TFSA wins.
New Brunswick-specific context
New Brunswick uses 4 provincial brackets (9.4%, 14%, 16%, 19.5%), with the top rate starting at $185k. The combined federal + NB marginal rate at $75,000 is 29.4% — moderate by Atlantic-province standards but lower than Nova Scotia. NB's Basic Personal Amount is $13,409, in the lower tier nationally. RRSP advantage is moderate here: a $5,000 contribution at $75k yields ~$1,470 refund. The province has no health premium and no payroll-funded health surcharge, simplifying the retirement-income math. For NB residents, TFSA tends to win at incomes below $60k (combined marginal ~24-26%) and RRSP wins above $90k where the 35%+ combined bracket kicks in.
Worked example: $75,000 income, $5,000/year
- Current combined marginal rate: 35.00%
- Annual RRSP refund (reinvested): $1,750
- RRSP ending balance after 30 years (before tax): $395,291
- RRSP withdrawal tax @ 25%: −$98,823
- RRSP net (with reinvested refund): $434,820
- TFSA ending balance after 30 years (tax-free): $395,291
- Verdict: RRSP wins by $39,529
Related New Brunswick calculators
Other Provinces
Reflects 2026 tax year rates.