See how much tax an RRSP contribution saves you in your province, what the contribution really costs after the refund, and how much new room you build for next year.
The 2026 RRSP dollar limit is $33,810. Your actual room is on your latest notice of assessment and includes unused room carried forward.
Withdrawals are taxed as income in the year you take them (except under the Home Buyers’ Plan or Lifelong Learning Plan).
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
How the refund is worked out
An RRSP contribution is a deduction: it lowers your taxable income, so you pay less federal and provincial tax. The calculator works out your full tax with and without the contribution — including bracket changes, Ontario’s surtax and health premium, and the BC tax reduction — and the difference is your refund.
A large contribution can drop you into a lower bracket part-way, so the refund rate on the last dollars is lower than on the first.
Worked example: $8,000 on $90,000 in Ontario
Income $90,000, RRSP $8,000, Ontario, 2026
All $8,000 comes off income taxed at 20.5% federally and 9.15% in Ontario, so the tax saved is $2,372. Next year’s new room from $90,000 of earned income is 18% = $16,200.
Tax saved (refund)$2,372
Effective cost of the contribution
$5,628
Refund rate
29.65%
New room earned for next year
$16,20018% up to $33,810
Tax without the contribution
$17,033.56
Tax with the contribution
$14,661.56
Tax saved
$2,372.00
Marginal rate before
29.65%
Limits for 2026
RRSP dollar limit: $33,810 (up from $32,490); $35,390 for 2027.
Room rule: 18% of previous year’s earned income, minus pension adjustment.
Over-contribution: $2,000 of lifetime cushion; beyond that, 1% a month penalty tax.
Tips
Invest the refund — in your TFSA or back into the RRSP — or the comparison with a TFSA no longer holds.
Spread contributions over years when your income is high; avoid contributing in a low-income year and deduct later instead (you can carry forward the deduction).
Ask for less tax withheld with form T1213 if you contribute regularly, rather than waiting for a refund.
Spousal RRSPs can split retirement income with a lower-earning partner.
Questions people ask
How much will I get back from an RRSP contribution?
Roughly your combined marginal tax rate times the contribution. At $90,000 in Ontario that is about 29.65%, so an $8,000 contribution saves about $2,370.
What is the RRSP deadline for the 2026 tax year?
Contributions made in 2026 or in the first 60 days of 2027 (up to 1 March 2027) can be deducted on your 2026 return.
How much RRSP room do I have?
18% of last year's earned income, up to $33,810 for 2026, minus any pension adjustment, plus unused room carried forward. Your notice of assessment shows the exact figure.
Should I choose an RRSP or a TFSA?
An RRSP is usually better if your tax rate now is higher than it will be when you withdraw; a TFSA is better if it will be the same or higher. Many people use both.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
