Find out how much tax an RRSP contribution saves you for 2026 in your province or territory. Your contribution is deducted from income, so the refund is roughly your marginal tax rate times the amount you put in. Someone in Ontario earning $85,000 who contributes $10,000 saves about $2,965 in tax, so the contribution really costs $7,035. Their new 2026 room, based on $80,000 of 2025 earned income, is $14,400.
RRSP Tax Savings Calculator 2026
Your refund, after-tax cost and deduction limit · Updated October 13, 2026
- Income tax without the RRSP
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- Income tax with the RRSP
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- Marginal tax rate before contributing
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- Tax saved per dollar contributed
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- After-tax cost of the contribution
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- Your 2026 RRSP deduction limit
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- Room left after this contribution
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Savings are the difference in 2026 federal and provincial income tax for a single person with employment income. CPP and EI do not change. Your actual deduction limit is on your notice of assessment.
RRSP limits and deadline for 2026
| Amount | |
|---|---|
| New room each year | 18% of the previous year’s earned income, up to the annual limit |
| 2026 RRSP dollar limit | $33,810 |
| 2027 RRSP dollar limit | $35,390 |
| Deadline for 2026 contributions | March 1, 2027 |
| Over-contribution allowed without penalty | $2,000 (not deductible) |
| Tax on excess contributions | 1% a month |
How your deduction limit is worked out
- Start with any unused room carried forward, shown on your latest notice of assessment.
- Add 18% of your 2025 earned income, up to $33,810. You reach the maximum with $187,833 of earned income.
- Subtract your 2025 pension adjustment if you belong to a workplace pension plan (box 52 of your T4).
- Earned income is mostly employment and self-employment income and net rental income. Investment income and pensions don’t count.
Room never expires, and you don’t have to claim the deduction in the year you contribute. If your income will be higher next year, you can contribute now, let the money grow tax-sheltered and claim the deduction later at a higher marginal rate.
How much tax an RRSP saves
| Situation | Contribution | Tax saved | Saved per dollar | After-tax cost |
|---|---|---|---|---|
| Ontario, $45,000 income | $3,000 | $721.50 | 24.1% | $2,278.50 |
| Alberta, $60,000 income | $5,000 | $1,159.28 | 23.2% | $3,840.72 |
| Quebec, $70,000 income | $7,000 | $2,528.23 | 36.1% | $4,471.78 |
| Ontario, $85,000 income | $10,000 | $2,965.00 | 29.7% | $7,035.00 |
| B.C., $120,000 income | $15,000 | $4,808.27 | 32.1% | $10,191.73 |
| Ontario, $250,000 income | $33,810 | $16,768.66 | 49.6% | $17,041.34 |
A large contribution can push part of your income into a lower bracket, so the saving per dollar falls. In the Alberta example, the first $912 of the deduction comes off income taxed at 28.5% and the rest at 22%. In Ontario, a deduction can also lower the Ontario Health Premium or let you keep more of the LIFT credit.
Things to keep in mind
- The refund is not free money: withdrawals are added to your income and taxed in the year you take them out, ideally in retirement when your rate is lower.
- A deduction lowers your net income, which can increase income-tested benefits such as the Canada Child Benefit and the Canada Groceries and Essentials Benefit.
- If tax is withheld from your pay, the saving usually arrives as a refund after you file. You can ask the CRA to reduce withholding at source with Form T1213.
- Compare with a TFSA: there is no deduction, but withdrawals are tax-free, which suits people whose tax rate is low today.
FAQ
When is the RRSP deadline for the 2026 tax year?
March 1, 2027. Contributions made in the first 60 days of 2027 can be deducted on your 2026 return or carried forward.
What happens if I contribute more than my limit?
You can be up to $2,000 over your limit without penalty, but you can’t deduct the excess until you have new room. Above that buffer, the CRA charges 1% a month on the excess until you withdraw it.
Is it better to contribute to an RRSP or a TFSA?
If your marginal rate today is higher than the rate you expect when you withdraw, an RRSP usually comes out ahead. If your income is low now, a TFSA is often better because withdrawals are tax-free and don’t affect benefits.
Related calculators
- TFSA Contribution Room CalculatorYour tax-free savings room
- FHSA CalculatorTax-deductible savings for a first home
- Canada Income Tax Calculator 2026Take-home pay in every province
Sources
- CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE · RRSP limits 2024 to 2027
- CRA: How contributions affect your RRSP deduction limit · 18% rule, pension adjustment, over-contributions
- CRA: Tax rates and income brackets for 2026
- CRA: T4127 Payroll Deductions Formulas, 123rd edition (July 1, 2026) · 2026 provincial rates and credits
- Finances Québec: Parameters of the personal income tax system for 2026
Figures current as of October 13, 2026
Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.
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