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RRSP Tax Savings Calculator

See how much an RRSP contribution cuts your 2026 tax bill, and find the contribution that gives you the refund you want.

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Your estimated 2026 room: {{ fRoom }} (18% of income, up to $33,810, plus any unused room from prior years).
Estimated tax savings
{{ fSavings }}
Income tax without RRSP{{ fTaxBefore }}
Income tax with RRSP{{ fTaxAfter }}
Real cost of contribution{{ fNetCost }}
Every dollar you contribute only costs you {{ costPerDollar }} after the tax savings at your marginal rate.
Tax savings by contribution amount
How your refund grows as you contribute more, up to your room.
Notice the curve flattens as contributions push you into lower brackets. The first dollars save the most: they come off your income at {{ margRate }}.
Uses 2026 federal and provincial brackets, assuming the basic personal amount is your only credit. Actual room depends on your CRA Notice of Assessment. Estimates only, not tax advice.
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✦ Good To Know

RRSPs, Explained

An RRSP contribution is a deduction: it comes straight off your taxable income. If you earn $85,000 and contribute $10,000, you're taxed as if you earned $75,000. The savings equal your marginal rate, so the higher your bracket, the bigger the refund.

The tax isn't forgiven, it's deferred. You pay when you withdraw in retirement, ideally at a lower rate than you saved at today. That spread is the real win.

New room for 2026 is 18% of your 2025 earned income, to a maximum of $33,810, minus any pension adjustment. Unused room carries forward indefinitely, so many people have far more room than one year's worth; your exact number is on your CRA Notice of Assessment.

Contributions made in the first 60 days of 2027 (up to March 1, 2027) can still be deducted on your 2026 return. That first-60-days window is where most last-minute tax planning happens.

The rule of thumb: RRSP wins when your tax rate today is higher than it will be in retirement; TFSA wins when it's lower (early career, part-time years). In the middle, it's often a mix. RRSP refunds also feel great but only help if you don't spend the refund.

Income near a benefit threshold changes the math too: RRSP deductions can protect OAS or Canada Child Benefit amounts. This is exactly the kind of question worth a 15-minute call, (905) 814-0111.

You get a lifetime $2,000 buffer over your limit with no penalty (but no deduction either). Beyond that, the CRA charges 1% per month on the excess until you withdraw it or new room absorbs it. If you've accidentally over-contributed, deal with it quickly; the penalty compounds monthly and the paperwork to unwind it (T3012A or T746) is much easier with help.

Not sure how much to contribute this year?
We'll find the contribution that maximizes your refund without wasting room. Responses within 24 hours.
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