RRSP tax savings calculator
Canada · 2026 ratesRRSP contributions are deducted from your income before tax. Enter your income, province and contribution to see how much tax you save and what the contribution really costs you.
How an RRSP saves you tax
Money you put into a Registered Retirement Savings Plan (RRSP) is deducted from your taxable income, so you save tax at your highest rate. The tax is deferred, not cancelled: you pay income tax when you take the money out, usually in retirement when your income and tax rate are lower.
For example, someone earning $80,000 in Ontario who contributes $5,000 saves $1,482.50 in income tax, so the contribution really costs them $3,517.50. The same contribution on $50,000 of income saves $1,102.50, because the tax rate on that slice of income is lower.
2026 RRSP contribution limit
| Item | 2026 |
|---|---|
| New room | 18% of your 2025 earned income |
| Maximum new room | $33,810 |
| Unused room from earlier years | Carried forward with no time limit |
| Over-contribution allowance | $2,000, then 1% a month on the excess |
| Deadline for 2026 contributions | March 1, 2027 |
If you belong to a workplace pension plan, your room is reduced by your pension adjustment. Your exact room is shown on your latest Notice of Assessment and in CRA My Account.
Frequently asked questions
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 the money. A TFSA is often better if your income is low now, because withdrawals are tax-free and do not affect income-tested benefits. Many people use both. See our TFSA contribution room calculator.
When do I get the tax back?
You claim the deduction on your tax return and usually receive it as part of your refund. You can also ask your employer to reduce the tax taken from your pay by filing form T1213 with the CRA.
Does an RRSP reduce CPP or EI?
No. CPP and EI are based on your pay, not your taxable income, so they stay the same. This calculator shows the saving in income tax only.
This calculator gives an estimate for guidance only, for an employee with only the basic tax credits. Sources: Canada Revenue Agency: RRSPs and related plans and CRA payroll deductions formulas (T4127).
Last checked and updated: October 2026 (2026 tax year)