What is the RRSP contribution limit for 2026?
The RRSP contribution limit for 2026 is 18% of your 2025 earned income, up to a maximum of $32,490. Unused contribution room carries forward from previous years.
CA · 2026 · FreeRRSP Calculator Canada 2026
Estimate provincial + federal marginal savings and project your RRSP to retirement with an expandable yearly schedule.
2026-style illustrations — not CRA advice. RRSP room also depends on prior-year earned income and carryforward.
2026 dollar limit $32,490; also 18% of prior-year earned income (here approximated from annual income: up to $17,100).
Tax savings this year$3,366
Tax refund estimate$3,366
Effective cost of contribution$6,634
Marginal tax rate (fed + prov est.)33.66%
Federal marginal only20.50%
Provincial add-on 13.16%
Monthly take-home increase (refund / 12)$280.50
Room vs $32,490 cap (simplified)$22,490
Illustrative room after 18% × income$7,100
Unused room vs min(18% × income, cap) minus contribution.
Federal tax only (progressive, illustrative)
Federal tax without RRSP$15,746
Federal tax with RRSP deduction$13,696
Disclaimer
This tool is for education only. Actual RRSP room is on your CRA notice of assessment; Quebec uses a separate provincial return. Marginal rates are simplified. Cashsembly is not affiliated with the CRA.
Frequently asked questions
What is the RRSP contribution deadline for the 2025 tax year?
The RRSP contribution deadline for the 2025 tax year is March 2, 2026. Contributions made by this date can be deducted on your 2025 income tax return.
How does an RRSP reduce my taxes?
RRSP contributions are deducted from your taxable income, reducing the income tax you owe. The tax savings equal your contribution multiplied by your marginal tax rate. For example, contributing $10,000 at a 40% marginal rate saves $4,000 in taxes.
When should I withdraw from my RRSP?
RRSP withdrawals are added to your taxable income in the year of withdrawal. It is generally best to withdraw in retirement when your income and tax rate are lower. You must convert your RRSP to a RRIF by December 31 of the year you turn 71.
What is a spousal RRSP?
A spousal RRSP allows you to contribute to an RRSP in your spouse's name. You get the tax deduction, but your spouse owns the funds. This is useful for income-splitting in retirement if one spouse expects a lower tax rate.