RRSP Tax Refund Calculator
This RRSP calculator shows how much tax an RRSP contribution saves in 2026 at your income and in your province, using the 2026 federal and provincial tax brackets. As a guide, a $5,000 RRSP deduction saves $1,632.50 for an Ontario resident with $75,000 of income, $1,410.00 in British Columbia, $1,525.00 in Alberta and $1,805.88 in Quebec. Enter your taxable income and the amount you plan to contribute, and the calculator shows the tax saved, your marginal rate and the after-tax cost of the contribution. Contributions for 2026 are due by March 1, 2027.
Written by Sharad Gondaliya, CPA CPAChartered Professional Accountant, CPA Ontario No. 61040184
Financial reviewer: Neha Gupta, CFA CFA charterholderReview of this page scheduledAt a glance
What the calculator answers. How much income tax an RRSP deduction saves you for 2026, how that compares with the amount you contribute, and your marginal tax rate before and after the deduction.
What you need. Your province of residence on December 31, 2026, your expected 2026 taxable income before the RRSP deduction, and the amount you plan to deduct. Your RRSP deduction limit tells you the most you can deduct.
The 2026 figures it uses. Federal brackets from 14% on the first $58,523 to 33% over $258,482, the federal basic personal amount of $16,452 (phasing to $14,829 at higher incomes), each province’s 2026 brackets and basic personal amount, the Ontario surtax and Health Premium, and the 16.5% Quebec abatement.
The method. Tax saved equals tax on your income minus tax on your income less the deduction. Credits other than the basic personal amount are left out, so the result is a close estimate, not your final assessment.
Room and deadline. Your 2026 deduction limit is the lesser of 18% of 2025 earned income and $33,810, plus unused room. Contributions for the 2026 tax year are due by March 1, 2027 (the 60th day of 2027).
Enter your province, taxable income and RRSP contribution to see the 2026 tax saved and your marginal rate.
1. How to Use the RRSP Calculator
Province. Choose the province or territory where you lived on December 31, 2026. That is the province whose tax applies to your whole year’s income, even if you moved during the year.
Taxable income before the RRSP. Enter your expected 2026 taxable income without the RRSP deduction. For most employees that is salary, bonus and taxable benefits, plus any interest, rental or self-employment income, minus other deductions such as union dues or child care expenses. If you are not sure, your 2025 return is a good starting point; line 26000 of last year’s return shows taxable income. If you sold investments at a gain, the capital gains tax calculator shows the taxable part to include.
RRSP contribution. Enter the amount you plan to deduct for 2026, including contributions already made in 2026 and those you plan to make by March 1, 2027. Include group RRSP contributions taken from your pay. If you contributed in January or February 2026 and deducted that amount on your 2025 return, leave it out.
What the results mean. The calculator shows four figures: the tax on your income without the deduction, the tax with it, the difference (your tax saved) and the saving as a percentage of the contribution. It also shows your marginal rate at both income levels, so you can see whether the deduction pulls you into a lower bracket.
Try more than one amount. Because the saving per dollar falls once a deduction drops you into a lower bracket, it is worth testing two or three amounts. If the last few thousand dollars save much less than the first, you may prefer to deduct part now and carry the rest forward to a higher-income year. For other tools, see all our investing, savings and tax calculators.
2. The Rules Behind the Numbers
Federal tax. The calculator applies the 2026 federal brackets below, then subtracts a credit of 14% of the federal basic personal amount. That amount is $16,452 when net income is $181,440 or less and falls in a straight line to $14,829 at $258,482 or more.
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14% |
| Over $58,523, up to $117,045 | 20.5% |
| Over $117,045, up to $181,440 | 26% |
| Over $181,440, up to $258,482 | 29% |
| Over $258,482 | 33% |
Provincial tax. It then applies your province’s 2026 brackets and subtracts a credit equal to the province’s basic personal amount times its lowest rate. The table shows the first bracket and basic amount for the four provinces in our static tables.
| Province | Lowest rate | First bracket ends at | Basic personal amount | Top rate |
|---|---|---|---|---|
| Ontario | 5.05% | $53,891 | $12,989 | 13.16% over $220,000 |
| British Columbia | 5.6% | $50,363 | $13,216 | 20.5% over $265,545 |
| Alberta | 8% | $61,200 | $22,769 | 15% over $370,220 |
| Quebec | 14% | $54,345 | $18,952 | 25.75% over $132,245 |
Ontario extras. Ontario adds a surtax of 20% of basic Ontario tax over $5,818 plus 36% of basic Ontario tax over $7,446, and the Ontario Health Premium, which rises in steps from $0 at $20,000 of taxable income to a maximum of $900 above $200,000. Both shrink when an RRSP deduction lowers your income, so Ontario savings can be larger than the bracket rates alone suggest.
Quebec. Quebec residents file a separate Quebec return. Their federal tax is reduced by the 16.5% Quebec abatement, which is why the federal part of a Quebec saving is smaller while the provincial part is larger.
What is left out. CPP and EI credits, the Canada employment amount, age and pension amounts, dividend tax credits and other credits are not included. The Ontario and B.C. low-income tax reductions are included; the B.C. reduction ends at $44,952 of income. For most people with income of $50,000 or more these change the RRSP saving very little, because the saving depends on the brackets the deduction removes. If you claim large credits, treat the result as an estimate.
3. Worked Examples
This example is hypothetical. Three people use the RRSP calculator for 2026.
- Priya, Ontario, $75,000 of income, $5,000 contribution. Her tax falls from $14,014.75 to $12,382.25, a saving of $1,632.50 ($14,014.75 – $12,382.25). The pieces: federal $1,025.00 ($5,000 x 20.5%), Ontario $457.50 ($5,000 x 9.15%) and $150.00 of Ontario Health Premium, because the premium is $750 at $75,000 and $600 at $70,000 ($750 – $600). Total: $1,025.00 + $457.50 + $150.00 = $1,632.50, or 32.65% of the contribution.
- Jordan, British Columbia, $100,000 of income, $10,000 contribution. His tax falls from $20,295.01 to $17,475.01, a saving of $2,820.00. All $10,000 comes off income where the federal rate is 20.5% and the B.C. rate is 7.7%: ($10,000 x 20.5%) + ($10,000 x 7.7%) = $2,050.00 + $770.00 = $2,820.00, or 28.2%.
- Marc, Alberta, $150,000 of income, $20,000 contribution. His tax falls from $38,409.73 to $31,209.73, a saving of $7,200.00. The whole $20,000 sits where the federal rate is 26% and the Alberta rate is 10%: ($20,000 x 26%) + ($20,000 x 10%) = $5,200.00 + $2,000.00 = $7,200.00, or 36%.
All three figures come from the same method the calculator uses: tax at the starting income minus tax at the income after the deduction, using 2026 brackets and basic personal amounts.
What the examples show. Priya saves more per dollar than Jordan despite earning less, because Ontario’s combined rate at her income is higher than B.C.’s at his and Ontario’s Health Premium also steps down as her income falls. Marc’s large contribution saves 36% on every dollar because all of it stays inside one federal and one Alberta bracket. Had Marc deducted $40,000, part of the deduction would have fallen into lower brackets and the average saving per dollar would have dropped.
4. RRSP Calculator Reference Table: Tax Saved on a $5,000 Contribution
The table. These figures are the 2026 tax saved by a $5,000 RRSP deduction at six income levels in the four most populous provinces. Each figure is the tax at the income shown minus the tax at that income less $5,000, rounded to the nearest dollar, with the saving as a share of the $5,000 in brackets.
| Taxable income before the deduction | Ontario | British Columbia | Alberta | Quebec |
|---|---|---|---|---|
| $50,000 | $1,103 (22.05%) | $980 (19.60%) | $1,100 (22.00%) | $1,285 (25.69%) |
| $60,000 | $1,254 (25.07%) | $1,181 (23.62%) | $1,196 (23.92%) | $1,615 (32.29%) |
| $75,000 | $1,633 (32.65%) | $1,410 (28.20%) | $1,525 (30.50%) | $1,806 (36.12%) |
| $100,000 | $1,574 (31.48%) | $1,410 (28.20%) | $1,525 (30.50%) | $1,806 (36.12%) |
| $150,000 | $2,170 (43.41%) | $2,035 (40.70%) | $1,800 (36.00%) | $2,373 (47.46%) |
| $250,000 | $2,491 (49.82%) | $2,305 (46.09%) | $2,147 (42.93%) | $2,511 (50.21%) |
The arithmetic for Ontario. To show the basis, here are the Ontario tax figures behind each saving.
| Income | Tax on that income | Tax after the $5,000 deduction | Tax saved |
|---|---|---|---|
| $50,000 | $7,165.78 | $6,063.28 | $1,102.50 |
| $60,000 | $9,417.25 | $8,163.74 | $1,253.51 |
| $75,000 | $14,014.75 | $12,382.25 | $1,632.50 |
| $100,000 | $21,520.55 | $19,946.55 | $1,574.00 |
| $150,000 | $41,625.64 | $39,455.16 | $2,170.48 |
| $250,000 | $89,472.25 | $86,981.02 | $2,491.23 |
Patterns worth knowing. In Ontario, the saving at $75,000 is higher than at $100,000, because dropping from $75,000 to $70,000 also cuts the Health Premium by $150. At $60,000 in every province, part of the $5,000 falls below the top of the first federal bracket ($58,523), so it saves at a lower rate. Quebec shows the highest saving at every income in the table because its provincial rates are higher. These are figures for a $5,000 deduction only; please use the calculator for other amounts.
See how the same contribution compares with putting the money in a TFSA instead.
5. Marginal vs Average Tax Rate
Two different rates. Your average tax rate is your total tax divided by your income. Your marginal rate is the tax on your next dollar of income. An RRSP deduction removes your top dollars of income, so it saves tax at your marginal rate, not your average rate. That is why the saving is usually much higher than people expect from looking at their total tax.
| Taxable income | Ontario average rate | Ontario marginal rate | B.C. marginal rate | Alberta marginal rate | Quebec marginal rate |
|---|---|---|---|---|---|
| $50,000 | 14.33% | 19.05% | 19.60% | 22.00% | 25.69% |
| $60,000 | 15.70% | 29.65% | 28.20% | 28.50% | 36.12% |
| $75,000 | 18.69% | 29.65% | 28.20% | 30.50% | 36.12% |
| $100,000 | 21.52% | 31.48% | 28.20% | 30.50% | 36.12% |
| $150,000 | 27.75% | 43.41% | 40.70% | 36.00% | 47.46% |
| $250,000 | 35.79% | 49.82% | 46.09% | 43.29% | 50.21% |
Reading the table. An Ontario resident with $100,000 of income pays $21,520.55 in total, an average of 21.52%. But each extra dollar costs 31.48 cents: 20.5% federal plus Ontario’s 9.15% raised by the 20% surtax. A deduction at the top of that income saves at 31.48%, which is 9.96 percentage points above the average rate (31.48% – 21.52%). Rates for the $150,000 row apply just below $150,000, where Ontario’s 11.16% bracket ends.
Why the marginal rate is not always the saving. The marginal rate applies only to the next dollar. A deduction large enough to cross a bracket boundary saves the higher rate on the part above the boundary and the lower rate below it. The calculator handles this automatically. For a quick check, multiply the deduction by your marginal rate; if the result is much higher than the calculator’s figure, your deduction is crossing a bracket.
Where the steps fall. The biggest jumps in marginal rate come where the first federal bracket ends at $58,523, where the 26% federal bracket starts at $117,045, and, in Ontario, where the surtax begins. Deductions that pull income back below one of these points save the most per dollar.
6. Refund vs Tax Saved
They are not the same number. The calculator shows tax saved: how much lower your 2026 tax is because of the deduction. Your refund is the gap between the tax already paid through payroll withholding or instalments and the tax you owe after all deductions and credits. The RRSP deduction raises your refund by the tax saved only if everything else was withheld exactly.
When you would have owed money. This example is hypothetical. Priya, from the worked examples, has $900 of tax owing from freelance income before her RRSP deduction. Her $5,000 contribution saves $1,632.50, so she ends with a refund of $732.50 ($1,632.50 – $900.00), not $1,632.50.
When withholding was already reduced. If your employer withholds less because of group RRSP contributions, or CRA approved a lower withholding on Form T1213, you have already received the tax saving through your pay. Your refund will be smaller, but you are not worse off: the saving arrived earlier.
Timing of the refund. The saving is real only once you file. A contribution made in February 2027 and deducted on your 2026 return produces its saving when that return is assessed in spring 2027. Contributions you choose not to deduct yet produce no saving until the year you claim them.
Not a bonus. The refund is tax deferred, not tax forgiven. When the money comes out of the RRSP or a RRIF later, it is taxed. Treat the refund as part of the investment, not as spending money; our RRSP guide explains how the deferral works over a lifetime, and the compound interest calculator shows what a reinvested refund can grow to.
7. RRSP Room and the 2026 Deadline
How much you can deduct. Your 2026 RRSP deduction limit is the lesser of 18% of your 2025 earned income and $33,810, minus any pension adjustment, plus unused room from earlier years. The calculator below estimates it from your income and pension details; your notice of assessment shows CRA’s figure. To reach the full $33,810 you need $187,833.33 of 2025 earned income ($33,810 / 18%) and no pension adjustment.
Enter your 2025 earned income, pension adjustment and carried-forward room to estimate your 2026 limit.
The deadline. Contributions for the 2026 tax year must be made by March 1, 2027 (the 60th day of 2027). Contributions made from January 1, 2026 to that date can be deducted on your 2026 return if they were not deducted on your 2025 return.
Looking ahead. CRA has already published the 2027 RRSP dollar limit: $35,390. It applies to 2026 earned income, so a raise this year increases next year’s room. Our page on the RRSP contribution limit has the dollar limit by year and explains pension adjustments.
Going over. You can exceed your limit by $2,000 without penalty if you were 18 or older last year. Anything above that is taxed at 1% a month. Please check your limit before entering a large contribution in the calculator; a saving on a deduction you are not allowed to claim is not a saving.
8. Withdrawals: The Calculation in Reverse
Tax on the way out. A withdrawal adds income, so its tax is the same calculation in reverse: tax on your income plus the withdrawal, minus tax on your income alone. At the time of withdrawal, the issuer also withholds tax at a flat rate as a prepayment.
| Amount withdrawn | Outside Quebec | Quebec residents (federal part) |
|---|---|---|
| $5,000 or less | 10% | 5% |
| Over $5,000, up to $15,000 | 20% | 10% |
| Over $15,000 | 30% | 15% |
Quebec. In Quebec, Quebec provincial income tax is also withheld on top of the federal part shown.
A worked figure. This example is hypothetical. An Alberta resident with $50,000 of income withdraws $8,000. The issuer withholds $1,600 ($8,000 x 20%). The withdrawal raises her 2026 tax from $6,875.20 to $8,635.20, an increase of $1,760.00, because all of it falls where the federal rate is 14% and the Alberta rate is 8% ($8,000 x 22%). She owes another $160.00 at filing ($1,760.00 – $1,600.00). Higher up the income scale the gap is usually wider, because withholding rates do not rise with your income.
Enter a withdrawal amount and your other income to see the withholding and the final tax.
Room is not restored. An RRSP withdrawal, unlike a TFSA withdrawal, does not give you new room. The exceptions are the Home Buyers’ Plan, which allows up to $60,000 for a first home, and the Lifelong Learning Plan; see our Home Buyers’ Plan guide. After 71, RRIF withdrawals follow the same tax logic, with no withholding on the yearly minimum; the RRIF calculator covers those.
9. Special Cases the Calculator Flags
Large deductions that cross brackets. If the calculator shows a lower saving per dollar on a big contribution, the deduction is reaching into lower brackets. Consider deducting only the part that saves at your top rate and carrying the rest forward. Unused contributions can be deducted in any later year.
OAS recovery tax. If you are 65 or older, receive Old Age Security and still have RRSP room, a deduction also lowers the OAS recovery tax. For 2026 income, OAS is reduced by 15% of net income above $95,323. In that band, a $5,000 deduction cuts the recovery tax by $750 ($5,000 x 15%) on top of the income tax saved. The calculator shows income tax only; the CPP and OAS payment dates page covers the benefit side.
Families with children. An RRSP deduction lowers your net income, which can raise the Canada Child Benefit paid in the following benefit year. Under the formula for the July 2026 to June 2027 benefit year, which is based on 2025 income, a family with two children and adjusted family net income above $82,847 loses 5.7% of each extra dollar of income, so each $1,000 of deduction in that band was worth $57 a year in CCB on top of the tax saving ($1,000 x 5.7%). The thresholds for the benefit year based on 2026 income have not been published yet.
Low incomes. If your taxable income is close to the basic personal amounts, an RRSP deduction may save little or nothing, because you already pay little tax. In that case a TFSA usually makes more sense, and you can still contribute to the RRSP and deduct later. Our TFSA vs RRSP page shows the comparison.
First-time home buyers. First Home Savings Account contributions are deductible too, so the same tax-saved logic applies to up to $8,000 a year, with a December 31 deadline instead of the 60-day window. The FHSA calculator tracks that room, and FHSA vs RRSP Home Buyers’ Plan compares the two for a down payment.
Moving provinces and high incomes. The calculator uses the province where you live on December 31. Above $181,440, the federal basic personal amount starts to shrink, which adds a little to the federal marginal rate up to $258,482; the calculator includes that effect.
8 Ways to Get More From Your RRSP Refund
1. Invest the refund
Putting the refund into a TFSA or back into the RRSP keeps the full value of the deduction working. The TFSA contribution room calculator shows how much TFSA room you have. Spending the refund shrinks your real saving to the after-tax amount you contributed.
2. Test several amounts
Run the calculator at two or three contribution levels. Stop deducting where the saving per dollar drops, and carry the rest of the deduction forward.
3. Deduct in the high-income year
If 2027 income will be higher, contribute now but deduct next year. In Ontario, $5,000 saves $1,102.50 at $50,000 of income and $2,170.48 at $150,000.
4. Get the saving through your pay
With regular contributions, ask CRA on Form T1213 to approve lower payroll withholding, so the tax saving arrives each pay rather than in spring.
5. Contribute before you need the deadline
Monthly contributions avoid the rush before March 1, 2027 and keep the money invested longer. The deadline then only matters for a final top-up.
6. Use the spousal option for a couple
If one partner has the higher rate today, a spousal RRSP gives that partner the deduction while building retirement savings in the other partner’s name.
7. Mind benefit thresholds
A deduction that keeps your net income below an OAS or CCB threshold saves more than the calculator’s income-tax figure alone. Check the special cases above.
8. Choose a low-cost RRSP
Fees reduce the growth that the deduction pays for. Compare commissions, account fees and transfer fees in our ranking of the best RRSP accounts, the best robo-advisors, or reviews such as Wealthsimple and Questrade.
RRSP Calculator FAQ
How does the RRSP calculator work out my tax saving?
It calculates your 2026 tax twice: once on your income, and once on your income minus the RRSP deduction. The difference is your tax saved. Tax uses the 2026 federal and provincial brackets less basic personal amount credits, plus the Ontario surtax and Health Premium and the Quebec abatement. Other credits are left out, so the result is an estimate.
How much tax will I save with an RRSP contribution?
It depends on your income and province. Using 2026 brackets, a $5,000 deduction at $75,000 of income saves $1,632.50 in Ontario, $1,410.00 in British Columbia, $1,525.00 in Alberta and $1,805.88 in Quebec. At $150,000 the Ontario saving rises to $2,170.48. Enter your own figures in the calculator for an exact estimate.
Why is my RRSP refund different from the tax saved?
Your refund depends on how much tax was already withheld from your pay or paid by instalments. The RRSP deduction lowers the tax you owe by the amount the calculator shows. If you would otherwise have owed tax, part of the saving cancels that balance. If your withholding was already reduced, you received part of the saving during the year.
What is the difference between marginal and average tax rate?
Your average rate is total tax divided by income. Your marginal rate is the tax on your next dollar. In Ontario at $100,000 of income, the average rate is 21.52% and the marginal rate is 31.48%. An RRSP deduction saves tax at your marginal rate, because it removes your top dollars of income first.
Does a bigger RRSP contribution always save more per dollar?
No. Once a deduction pulls your income into a lower bracket, each further dollar saves less. A $20,000 deduction at $150,000 in Alberta saves 36% on every dollar because it stays in one bracket, but a much larger deduction would reach lower brackets. Testing several amounts in the calculator shows where the saving per dollar starts to fall.
What is the RRSP deadline for 2026 contributions?
The deadline for the 2026 tax year is March 1, 2027, the 60th day of 2027. Any contribution made from January 1, 2026 to March 1, 2027 can be deducted on your 2026 return, as long as it was not already deducted on your 2025 return.
How much can I contribute to my RRSP for 2026?
Your limit is the lesser of 18% of your 2025 earned income and $33,810, minus any pension adjustment, plus unused room from earlier years. Your notice of assessment shows the exact figure. You can be up to $2,000 over without penalty if you were 18 or older last year; anything above that is taxed at 1% a month.
How is tax withheld on an RRSP withdrawal?
Outside Quebec, the issuer withholds 10% on withdrawals of $5,000 or less, 20% over $5,000 up to $15,000, and 30% over $15,000. In Quebec the federal part is 5%, 10% and 15%, with Quebec provincial tax withheld on top. The full withdrawal is added to your income, so the final tax can be higher than what was withheld.
Does the calculator work for Quebec?
Yes. For Quebec residents it applies the 2026 Quebec brackets and basic personal amount and reduces federal tax by the 16.5% Quebec abatement. At $75,000 of income, a $5,000 deduction saves $1,805.88 in Quebec, the highest of the four provinces in our table, because Quebec’s provincial rates are higher.
How does WealthScale make sure the calculator is accurate?
The calculator and the tables on this page use the same 2026 brackets and basic personal amounts, checked against Canada Revenue Agency and provincial publications on October 22, 2026. Every static figure was computed with the same method as the calculator. Our editorial standards explain how we check, date and correct figures.
Know your saving? Next, make sure you have the room for it.
Figures on this page were checked against Canada Revenue Agency publications on October 22, 2026. We update this page when a figure changes.
Meet the Experts Behind WealthScale
Sharad is a CPA Ontario member (No. 61040184) and a Certified Public Accountant licensed in Washington and Montana, with more than 15 years in accounting and tax, a Diploma in Banking and Finance and a Certificate in Small Business Finance. He checks WealthScale content against primary sources. WealthScale is independent of his firm, Gondaliya CPA Professional Corporation, and provides general information only, not personal financial, investment, tax or legal advice.
- Chartered Professional Accountant, CPA Ontario
- Certified Public Accountant, Washington (No. 57629) and Montana (No. PAC-CPAP-LIC-033176)
- Writing on tax and registered accounts since 2021
- Reader’s Choice Award 2025 Winner, Best Accountant (Toronto)
Neha Gupta is a CFA charterholder based in Winnipeg who has worked in financial markets since December 2005. She has published more than 2,600 investment articles and is Head of Operations and Finance at Whiteland Real Estate. She reviews WealthScale’s investing pages for accuracy.
- CFA charter, CFA Institute (awarded 2023)
- Post Graduate Diploma in Business Administration (Finance), 2008
- In financial markets since December 2005
- More than 2,600 published investment articles
General information only. Not financial, investment, tax or legal advice. WealthScale is independent and is published by WealthScale Media Inc., 55 Queen St E, Suite 1205, Toronto, ON M5C 1R6. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.