General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
When you earn between $60K and $100K, an RRSP gives you a decent tax break — about 30 cents back for every dollar you put in. But the TFSA grows completely tax-free forever, and you never pay tax when you take it out. So fill up your TFSA first. Once that's full, start putting money into your RRSP. The one big exception: if you have kids under 18, the RRSP is more powerful because it lowers your income on paper, which means the government sends you bigger monthly child benefit cheques.
Earning $80,000 in Ontario with two kids under 6: a $5,000 RRSP contribution gives you a $1,574 refund (31.48% rate) and lowers your family net income from $80K to $75K. That income drop can increase your CCB by several hundred dollars per year. So the RRSP effectively gives you a tax refund AND bigger child benefit cheques.
Show the analysis
The $60K–$100K corridor spans the second federal bracket (20.5% on income from $58,523–$117,045) combined with provincial rates of 9.15% in Ontario, producing combined marginal rates of approximately 29.65% to 31.48% depending on the surtax interaction. These rates provide meaningful but not overwhelming RRSP arbitrage — roughly $0.30 per dollar versus the TFSA's zero-cost withdrawal. The CCB interaction is the critical variable: the CCB clawback begins at $38,237 of adjusted family net income, and RRSP deductions directly reduce this figure.
At $80,000 Ontario income: RRSP refund = $5,000 × 31.48% = $1,574. CCB for two children under 6 at $80K family net income vs. $75K: clawback reduction of ~$115/year in additional CCB. Total first-year yield from $5,000 RRSP: ~$1,689 (refund + CCB boost). TFSA comparison: $5,000 with no upfront benefit but permanent tax-free compounding.
Edge cases
- Parents in this bracket should prioritize RRSP over TFSA to maximize the dual yield of tax refund + enhanced CCB payments.
- If income is expected to climb past $117,045 soon, consider preserving RRSP room for the 43%+ combined bracket.
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Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.