An RRSP contribution lowers your taxable income, so the government gives you back tax at your marginal rate. Enter your income and contribution to see your refund.

How the RRSP refund works

Every dollar you put in an RRSP is deducted from your income. If your marginal rate is 30%, a $5,000 contribution cuts your tax by about $1,500. The money then grows tax-sheltered until you withdraw it, usually in retirement when your income and tax rate are lower.

2026 RRSP limits

  • Your new room for 2026 is 18% of your 2025 earned income, up to $33,810, minus any pension adjustment.
  • Unused room carries forward forever. Your exact limit is on your Notice of Assessment and in CRA My Account.
  • Contributions made in the first 60 days of 2027 can be deducted on your 2026 return.
  • Over-contributing more than $2,000 costs a 1% per month penalty.

RRSP or TFSA?

If your tax rate today is higher than you expect in retirement, the RRSP usually wins. If your income is low or you may need the money sooner, the TFSA is often better. Many people use both. Compare with our TFSA calculator.

FAQ

Can I use my RRSP to buy a home?

Yes. The Home Buyers’ Plan lets first-time buyers withdraw up to $60,000 tax-free and repay it over 15 years.

When do I get the refund?

When you file your tax return, or sooner if your employer reduces withholding for a group RRSP. See the tax refund calculator.