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Which is Better - TFSA, RRSP or FHSA?

Income earned within any of these accounts is not included in taxable income.

Contributions to:

RRSP are deductible from income
FHSA are deductible from income
TFSA are not deductible from income

Withdrawals from:

RRSP or RRIF are taxable
FHSA are not taxable, if they are qualifying withdrawals
FSHA transferred directly to RRSP are not taxable until withdrawn from the RRSP/RRIF
TFSA are not taxable

Contributions to a First Home Savings Account are tax-deductible, and qualifying withdrawals are not taxed, so might be the best option for who don't yet own a home but plan to buy one within the next 15 years. If not used toward buying a home (tax-free withdrawal), the funds can be transferred to an RRSP without being taxed on the transfer.

The RRSP and TFSA have almost equivalent results when the marginal income tax rate for RRSP contributions is the same as for RRSP withdrawals.

The RRSP may be better than TFSA if

the marginal tax rate for RRSP withdrawals will be lower than the marginal tax rate when contributions are made
you are saving to use as a last resort fund for emergencies

The TFSA may be better than RRSP if:

you are in the lowest tax bracket - i.e., in 2026 have income less than $58,523
the marginal rate for RRSP withdrawals will be higher than the marginal rate for contributions
you are close to retirement age, and have little or no savings or pension. RRSP/RRIF withdrawals may cause loss of Guaranteed Income Supplement (GIS) or other benefits.
further RRSP contributions will result in withdrawals which are high enough to cause a clawback of your Old Age Security.

The TFSA will also be useful in some situations such as:

when there is no RRSP contribution room available
for savings goals such as a vehicle, appliances, down payment for a house, etc. It could be used instead of, or in combination with, the RRSP Home Buyer's Plan (HBP) and/or the First Home Savings Plan.
seniors who are not eligible, because of age, to contribute to an RRSP
young people just starting out, in a low tax bracket now, expecting to increase earnings and be in a higher tax bracket in a few years. At that time, the TFSAs could be transferred to an RRSP, making the contribution when the tax savings is greater. Make the transfer near the end of a calendar year, so that the withdrawal increases your TFSA contribution room sooner.