Free tool

RRSP tax saving, worked out.

Enter your income and what you plan to contribute. See the tax it saves, what the contribution really costs you and whether you are inside the 2026 limit. Official 2026 rates, checked 13 November 2026.

Tax saved

Income tax without the contribution
Income tax with it
Contribution
What it really costs you
If you reinvest the refund too

Estimate with the basic credits only. The saving arrives as a refund, or as less tax owing.

A worked example

CAD 12,000 in, about $4,116 back

Take a manager in Durham Region who earns CAD 118,000 and has never used her RRSP room. She contributes CAD 12,000 before the deadline. Her 2026 income tax falls by about $4,116, so the contribution costs her $7,884 out of pocket.

She then puts the refund straight back into the RRSP, which earns its own deduction next year. The habit that builds wealth is not the contribution. It is what happens to the refund.

Three checks before you copy her: is your income likely to be higher next year (then consider carrying the deduction forward), are you buying a first home (a first home savings account may come first), and do you have high-interest debt (paying it off usually beats both).

Ontario, 2026

Tax saved by income and contribution

Income	$5,000 contribution	$10,000 contribution	$20,000 contribution
$60,000	$1,217	$2,192	$4,247
$90,000	$1,483	$2,965	$6,080
$120,000	$1,995	$3,689	$6,863
$160,000	$2,248	$4,479	$8,820
$250,000	$2,491	$4,982	$9,965

2026 RRSP dollar limit: CAD 33,810. Sources: Canada Revenue Agency, MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE; Canada Revenue Agency, T4032-ON Payroll Deductions Tables, Ontario, effective 1 January 2026. Checked 13 November 2026. Education, not investment advice: what to hold inside an RRSP is a question for a licensed adviser.

RRSPs: your questions

How much tax does an RRSP contribution save?

It saves tax at your marginal rate, because the contribution comes off the top of your income. In Ontario in 2026, CAD 10,000 into an RRSP saves about $2,192 at CAD 60,000 of income, $3,689 at CAD 120,000 and $4,982 at CAD 250,000.

What is the RRSP limit for 2026?

New room for 2026 is 18 percent of your 2025 earned income, up to CAD 33,810, less any pension adjustment. Unused room from earlier years carries forward. Your exact limit is on your CRA notice of assessment and in CRA My Account.

When is the RRSP deadline?

Contributions made in the first 60 days of a year can be claimed on the previous year's return. For the 2026 tax year that means contributions made during 2026 or in the first 60 days of 2027.

RRSP or TFSA: which first?

An RRSP gives a deduction now and is taxed when you withdraw. A TFSA gives no deduction and is never taxed. The RRSP tends to win when your tax rate today is higher than it will be when you withdraw, which is common above about CAD 100,000 of income. The TFSA tends to win at lower incomes or when you may need the money soon. Many households use both.

What happens if I contribute too much?

A small cushion is allowed. Above it, the excess is charged a penalty tax every month until it is withdrawn or new room opens. Check your limit on your notice of assessment before a large contribution.

Should I claim the whole deduction this year?

Not always. You can contribute now and claim the deduction in a later year. If your income will be much higher next year, saving part of the deduction can be worth more. We look at this on every return.