Cpa Kaival PatelDirector, Profuture Tax Academy · Helping Small Business, CPA & Bookkeepers to Grow

RRSP vs TFSA vs FHSA – Which One Saves You More Tax in Canada?

Name: RRSP vs TFSA vs FHSA – Which One Saves You More Tax in Canada?
Uploaded: 2025-06-04T16:01:06+00:00
Duration: 59 s
Channel: Cpa Kaival Patel
Description: In this concise video, CPA Kaival Patel walks viewers through the tax treatment of three Canadian savings vehicles—RRSP, FHSA, and TFSA—using simple…

4 Jun 2025 · 1 min

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In this concise video, CPA Kaival Patel walks viewers through the tax treatment of three Canadian savings vehicles—RRSP, FHSA, and TFSA—using simple numeric examples. He shows how contributions to an RRSP ($8,000) and an FHSA ($4,000) lower taxable income (from $100,000 to $92,000 and then to $88,000 respectively), resulting in a tax refund for the amount previously withheld. In contrast, a $3,000 TFSA contribution does not reduce taxable income, so no refund is generated. The explanation emphasizes the core difference: RRSP and FHSA contributions are tax‑deductible, while TFSA contributions are made with after‑tax dollars. The video ends with a standard call to subscribe, like, and share.

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Hi, I'm Kaival Patel, your trusted CPA. I'm going to explain you the difference between RRSP, TFSA, and FHSA. The first difference: tax saving on contribution. Let's say you invest $8,000 into RRSP. How it benefits? Let's assume your salary is $100,000 and you invest $8,000 into RRSP. So your taxable salary for CRA becomes $92,000. Now tax is also calculated on $92,000 only. Whatever extra tax you have paid for this $8,000 through your job, you will get it back as a tax saving. Now FHSA also works same way. Let's say you invest another $4,000 into FHSA. So now your taxable income reduced to $88,000 and tax is calculated on $88,000 only. So whatever extra tax has been deducted for this $4,000, you will get back as a refund. And let's say you invested $3,000 in TFSA. Is it tax deductible? No. It means your taxable income doesn't reduce and you still pay taxes on the $88,000 income. Subscribe, like, and share