How RRSP tax savings work
RRSP contributions are deducted from your income, so they come off the top of your taxable income — the part taxed at your highest rate. That is why the saving is close to your marginal rate. The calculator works it out exactly by computing your 2026 tax with and without the contribution.
The saving usually arrives as a bigger refund when you file. You can also ask your employer to reduce tax at source with form T1213.
Frequently asked questions
What is the RRSP limit for 2026?
The 2026 RRSP dollar limit is $33,810. Your own deduction limit is the lesser of that and 18% of your previous year’s earned income, plus any unused room — it is on your notice of assessment.
How much tax does an RRSP contribution save?
Roughly your marginal tax rate times the contribution, because the deduction removes income from your top bracket. A large contribution can cross into a lower bracket and save a little less per dollar.
When is the RRSP deadline?
Contributions made in the first 60 days of 2027 can be deducted on your 2026 return, as well as contributions made during 2026.
Do I pay tax on RRSP withdrawals?
Yes. Withdrawals are taxable income in the year you take them out (except under the Home Buyers’ Plan or Lifelong Learning Plan), so the RRSP defers tax rather than eliminating it.
Related tools
Sources
Checked against these official sources on . How we calculate
- MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE — Canada Revenue Agency
- T4127 Payroll Deductions Formulas (122nd and 123rd editions, 2026) — Canada Revenue Agency
- Tax rates and income brackets for individuals — current year — Canada Revenue Agency