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Ontario residents can contribute up to $33,810 to their RRSP in 2026 — or 18% of their 2025 earned income, whichever is lower — plus any unused contribution room carried forward from previous years. RRSP contributions reduce your taxable income dollar-for-dollar, and your refund is the difference between your tax without the contribution and with it. At $90,000 income, a $10,000 RRSP contribution generates a tax refund of about $2,970. The deadline to contribute and claim against your 2025 tax year was March 2, 2026. The RRSP Home Buyers' Plan allows first-time buyers to withdraw up to $60,000 tax-free for a home purchase, repayable over 15 years.
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).
Federal 20.50% + provincial 9.15%
Unused room vs min(18% × income, cap) minus contribution.
Federal + provincial income tax (2026)
A $10,000 RRSP contribution on $90,000 of Ontario employment income cuts your 2026 income tax by about $2,965.
| Annual income | Marginal rate | Refund on $5,000 | Refund on $10,000 | Refund on $20,000 |
|---|---|---|---|---|
| $60,000 | 29.7% | $1,217 | $2,192 | $4,247 |
| $90,000 | 29.7% | $1,483 | $2,965 | $6,080 |
| $120,000 | 43.4% | $1,995 | $3,689 | $6,863 |
| $150,000 | 43.4% | $2,170 | $4,341 | $8,682 |
Refund = 2026 federal + Ontario income tax without the contribution minus tax with it, so a contribution that drops you into a lower bracket is priced exactly rather than at one marginal rate. Employment income with basic personal amounts, the Canada employment amount, CPP and EI credits; the calculator above uses the same method. Includes the Ontario surtax and Ontario Health Premium.
The 2026 RRSP contribution limit is $33,810 — 18% of your 2025 earned income, up to this maximum. Any unused contribution room from previous years carries forward indefinitely. To find your exact room, check your CRA My Account or your most recent Notice of Assessment. Contributions made in the first 60 days of 2026 (by March 2, 2026) could be claimed against the 2025 tax year.
The Home Buyers' Plan allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free to use toward a home purchase. Rules: you must be a first-time home buyer (or not have owned a home in the past 4 years), have a written agreement to buy or build a home, and intend to live in the home as your principal residence. The withdrawal is tax-free but must be repaid to your RRSP in equal installments over 15 years starting the second year after withdrawal. Missed repayments are added to your taxable income for that year.
| Item | RRSP | TFSA |
|---|---|---|
| 2026 contribution limit | $33,810 (18% of income) | $7,000 |
| Tax deduction on contribution | Yes — reduces taxable income now | No |
| Tax on withdrawals | Yes — taxed as ordinary income | No — withdrawals tax-free |
| Best for | High income earners (top tax brackets) | Lower income or saving for short-term goals |
| Cumulative room (age 18+ since 2009) | Based on earned income history | Up to $109,000+ |
| Investment growth | Tax-deferred | Tax-free |
RRSP is best when your income now is higher than it will be in retirement — you get the deduction at a high rate and pay tax on withdrawal at a lower rate. TFSA is best for lower incomes, short-term savings goals, or when you expect your retirement income to be similar to or higher than your current income.
The Lifelong Learning Plan allows you to withdraw from your RRSP for full-time education or training at an accredited institution. Withdrawals are tax-free but must be repaid to your RRSP in equal installments over 10 years (repayments typically start 5–6 years after the first withdrawal). Missed repayments are added to your taxable income. LLP withdrawals can be combined with HBP if you meet both sets of conditions.
The RRSP contribution limit for 2026 is $33,810 or 18% of your 2025 earned income, whichever is lower, plus any unused room from previous years. To find your exact limit, check CRA My Account or your Notice of Assessment.
Your RRSP tax refund is the difference between your 2026 federal and Ontario tax without the contribution and with it — for a contribution that stays within one bracket, that is roughly your marginal rate times the contribution. At $90,000 income in Ontario, a $10,000 contribution generates a refund of about $2,970. At $75,000 it is about $3,120, because the deduction also lowers the Ontario Health Premium by $150. At $150,000 income, the same contribution generates about $4,340.
The deadline to contribute to your RRSP and claim it against your 2025 tax year was March 2, 2026 — the first 60 days of 2026. Contributions after March 2, 2026 count toward your 2026 tax year and must be claimed on your 2026 return filed in spring 2027.
The Home Buyers' Plan allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free for a home purchase. The amount must be repaid to your RRSP over 15 years. You must be a first-time buyer and have a written agreement to buy or build a qualifying home.
If your income is above $90,000, RRSP is usually better — you get a deduction at a high marginal rate now and pay tax on withdrawal in retirement at a lower rate. If your income is below $60,000, TFSA may be better since the immediate tax benefit is smaller. Many Ontarians contribute to both: RRSP for the deduction, TFSA for tax-free growth.
Yes. The Lifelong Learning Plan allows you to withdraw from your RRSP tax-free for full-time education at an accredited institution. Withdrawals must be repaid over 10 years. This can be combined with the Home Buyers' Plan if you meet both sets of eligibility conditions.
Educational estimates only. Not tax advice.