What is the RRSP contribution limit for 2026?
The RRSP contribution limit for 2026 is 18% of your 2025 earned income, up to a maximum of $33,810. Unused contribution room carries forward from previous years.
Last updated
CA · 2026 · FreeRRSP Calculator Canada 2026
Estimate your exact federal + provincial tax savings and project your RRSP to retirement with an expandable yearly schedule.
2026-style illustrations — not CRA advice. RRSP room also depends on prior-year earned income and carryforward.
2026 dollar limit $33,810; also 18% of prior-year earned income (here approximated from annual income: up to $17,100).
Tax savings this year$2,965
Tax refund estimate$2,965
Effective cost of contribution$7,035
Marginal tax rate (federal + provincial)29.65%
Average saving on this contribution29.65%
Federal 20.50% + provincial 9.15%
Monthly take-home increase (refund / 12)$247.08
Room vs $33,810 cap (simplified)$23,810
Illustrative room after 18% × income$7,100
Unused room vs min(18% × income, cap) minus contribution.
Federal + provincial income tax (2026)
Income tax without RRSP$18,516
Income tax with RRSP deduction$15,551
Disclaimer
This tool is for education only. Actual RRSP room is on your CRA notice of assessment; Quebec uses a separate provincial return, and Quebec results here use the federal abatement but not Quebec-specific credits. Tax savings assume employment income with basic personal amounts, CPP and EI credits. Cashsembly is not affiliated with the CRA.
RRSP tax refund examples: $10,000 contribution in Ontario
A $10,000 RRSP contribution on $100,000 of Ontario income cuts your 2026 income tax by about $2,991, so it really costs you $7,009.
| Income | Tax saved | Saved per $100 | Net cost of $10,000 |
|---|---|---|---|
| $50,000 | $2,055 | $20.55 | $7,945 |
| $75,000 | $3,115 | $31.15 | $6,885 |
| $100,000 | $2,991 | $29.91 | $7,009 |
| $150,000 | $4,341 | $43.41 | $5,659 |
| $200,000 | $4,826 | $48.26 | $5,174 |
Tax saved is the difference in 2026 federal and Ontario income tax (including the Ontario surtax and Ontario Health Premium) with and without the $10,000 deduction, so a contribution that crosses a bracket is priced exactly. Employment income with basic personal amounts, CPP and EI credits; the calculator above uses the same method. Tax is due when you withdraw from an RRSP or RRIF.
Frequently asked questions
What is the RRSP contribution deadline for the 2025 tax year?
The RRSP contribution deadline for the 2025 tax year is March 2, 2026. Contributions made by this date can be deducted on your 2025 income tax return.
How does an RRSP reduce my taxes?
RRSP contributions are deducted from your taxable income, reducing the income tax you owe. The saving is your income tax without the deduction minus your income tax with it, which is roughly your contribution times your marginal rate, but less if the deduction drops you into a lower bracket. For example, a $10,000 contribution on $75,000 of Ontario employment income saves about $3,100 in 2026 (federal, Ontario and Ontario Health Premium combined).
When should I withdraw from my RRSP?
RRSP withdrawals are added to your taxable income in the year of withdrawal. It is generally best to withdraw in retirement when your income and tax rate are lower. You must convert your RRSP to a RRIF by December 31 of the year you turn 71.
What is a spousal RRSP?
A spousal RRSP allows you to contribute to an RRSP in your spouse's name. You get the tax deduction, but your spouse owns the funds. This is useful for income-splitting in retirement if one spouse expects a lower tax rate.