Canadian accounts, compared
Accounts are containers — each with its own tax deal. These two tables compare every container a Canadian beginner meets; the articles below each go deep on one.
| Account | Best for | 2026 limit | Tax going in | Tax coming out |
|---|---|---|---|---|
| TFSA | Any goal — the flexible default | $7,000/yr, unused room carries | No deduction | Tax-free, always |
| RRSP | Retirement | 18% of income, max $33,810 | Deductible | Taxed as income |
| FHSA | First home | $8,000/yr, $40,000 lifetime | Deductible | Tax-free for a first home |
| RESP | A child's education | $50,000 lifetime + 20% grant | No deduction | Taxed to the student (usually ≈ $0) |
| RRIF | Retirement payout stage | Transfers from RRSP only | — | Taxed as income |
| Non-registered | After the shelters are full | Unlimited | No deduction | Gains 50% taxable; interest fully |
| Account | Withdraw anytime? | Room comes back? | Key eligibility |
|---|---|---|---|
| TFSA | Yes | Yes — on January 1 of next year | Tax resident, 18+, SIN |
| RRSP | Yes, but taxed + withheld | No — gone forever (HBP/LLP excepted) | Earned income on a filed return |
| FHSA | Tax-free only for the home | No | Tax resident 18–71, first-time buyer |
| RESP | Contributions yes; grants follow rules | No | Child is a resident with a SIN |
| RRIF | Minimum withdrawal is mandatory | No | Converted from an RRSP |
| Non-registered | Yes | No limits to restore | Age of majority, SIN |
Go deeper: the accounts series
TFSA explained: the tax-free container almost everyone starts with
How the Tax-Free Savings Account really works: contribution room, the January 1 rule, what you can hold inside — and the mistakes that cost beginners money.
RRSP explained: the retirement account with an upfront reward
The Registered Retirement Savings Plan trades a tax break today for tax later. How contribution room is earned, what withdrawals really cost, and when an RRSP shines.
FHSA explained: the first-home account that combines both perks
The First Home Savings Account gives you an RRSP-style deduction going in and a TFSA-style tax-free withdrawal coming out — if the money buys your first home.
RESP explained: education savings with a 20% government match
The Registered Education Savings Plan is the only account where the government adds money to yours — up to $7,200 per child. How the CESG works and what happens if plans change.
TFSA vs RRSP vs FHSA: which account first?
A step-by-step way to think through the classic beginner dilemma — employer match, home plans, income level — with the common patterns Canadians follow.
Non-registered accounts: when the tax shelters are full
The plain taxable investment account: no limits, no lock-ins, no perks. Who actually needs one, how gains and dividends are taxed, and the record-keeping habit that saves headaches.
Next: what goes inside the containers → Investments, compared