RRSP Calculator

The 2026 RRSP limit is $32,490, or 18% of your 2025 earned income — whichever is lower. Unused room from prior years adds to this automatically. Check your CRA My Account or last Notice of Assessment for your exact available room.

The RRSP deadline for the 2025 tax year is March 2, 2026. Contributions made between January 1 and March 2, 2026 can be applied to either your 2024 or 2025 return — whichever gives you the better result. Missing this date means you lose the deduction for 2025.

Your RRSP contribution is deducted from your taxable income. If you earn $80,000 and contribute $10,000, you only pay tax on $70,000. At a marginal rate of 40%, that's a $4,000 refund. The money then grows entirely tax-deferred until you withdraw in retirement, ideally at a lower tax bracket.

Use an RRSP if you are in a high tax bracket now and expect lower income in retirement — you get a large deduction today and pay less tax on withdrawals later. Use a TFSA if you are in a lower bracket, want access to funds before retirement, or expect your tax rate to be the same or higher in the future. Many Canadians use both.

Yes, but withdrawals are added to your taxable income and withholding tax applies: 10% for amounts up to $5,000, 20% for $5,001–$15,000, and 30% for amounts over $15,000 (Quebec rates differ slightly). Unlike a TFSA, the contribution room you withdraw is permanently lost — it is never restored.

You must convert your RRSP to a RRIF (Registered Retirement Income Fund) or a registered annuity by December 31 of the year you turn 71. After that you can no longer make RRSP contributions. A RRIF requires minimum annual withdrawals based on your age, and those withdrawals are fully taxed as income.