RRSP

Pay less tax this year. Retire on more.

A Registered Retirement Savings Plan turns today’s tax bill into tomorrow’s retirement. Work out exactly what you can contribute — and what it hands back.

The basics

What is an RRSP, and how does the room work?

An RRSP is a registered account where contributions are tax-deductible, investments grow tax-deferred, and you pay tax only when you withdraw — usually in retirement, when your income is lower.

Your contribution room for 2026 is 18% of your 2025 earned income, up to a maximum of $33,810, reduced by any pension adjustment and increased by unused room carried forward from previous years. The dollar maximum is a ceiling, not a target — most Canadians are limited by the 18% rule, not the cap.

Deduct it now

Contributions reduce your taxable income, which is where the refund comes from.

Grow it tax-deferred

No tax on growth inside the plan while it compounds.

Room never expires

Unused contribution room carries forward indefinitely.

Free RRSP calculator

How much can you contribute — and what comes back?

Slide in your income and pension details for an instant estimate of your 2026 room, then see the tax refund a contribution could generate.

Employment, self-employment, and net rental income — not investment income or pensions.
Box 52 on your T4. Leave at $0 if you have no workplace pension.
On your latest Notice of Assessment. Unused room never expires.
Your estimated 2026 contribution room
$0
 
18% of your 2025 earned income$0
Capped at the 2026 maximum$33,810
Less pension adjustment−$0
Plus unused carry-forward$0
Combined federal + provincial rate on your top dollar. Not sure? Most Ontario earners land roughly between 30% and 45% — confirm yours with your accountant.
Estimated tax refund
$0
 

This estimator runs entirely in your browser — we don’t store or see your numbers. It uses the CRA 2026 RRSP dollar maximum of $33,810 and the 18%-of-prior-year-earned-income rule, less pension adjustment, plus carry-forward. The refund figure is a simplified estimate based on the marginal rate you select and doesn’t account for your full tax situation, credits, or clawbacks. Not financial or tax advice — your official deduction limit is on your CRA Notice of Assessment.

Talk through my numbers → Start with the RESP basics
Common questions

Questions Canadians ask

How much can I contribute to my RRSP in 2026?
The lesser of 18% of your 2025 earned income or $33,810, minus any pension adjustment, plus unused room carried forward. The $33,810 cap only binds if you earned roughly $187,833 or more in 2025 — below that, the 18% rule sets your limit.
What counts as earned income?
Employment income, self-employment income, and net rental income. It does not include investment income, capital gains, pension income, or RRSP withdrawals — a common source of over-estimating your room.
What if I have a workplace pension?
Your room is reduced by your pension adjustment (box 52 on your T4), which reflects the value of the pension benefit you earned. Members of generous defined-benefit plans often have very little RRSP room left as a result.
Does unused room expire?
No — it carries forward indefinitely. If you couldn’t contribute in lean years, that room is still waiting. Your total available room is printed on your latest Notice of Assessment.
What happens if I over-contribute?
There’s a $2,000 lifetime cushion that isn’t penalized (but isn’t deductible either). Beyond that, the CRA charges 1% per month on the excess until it’s withdrawn — which is why checking your Notice of Assessment first matters.
RRSP or TFSA — which first?
It usually comes down to your tax rate now versus in retirement. An RRSP deduction is worth more the higher your current rate; a TFSA wins when your rate is low now or you want withdrawals that don’t affect income-tested benefits. Many people use both — that’s a conversation worth having with real numbers.
When is the contribution deadline?
March 1, 2027 for the 2026 tax year — contributions in the first 60 days of a year can be applied to the previous tax year. Contributing earlier gives your money longer to grow.
Let’s talk

Make this year’s contribution count.

A free, no-pressure call: your real contribution room, whether RRSP or TFSA does more for your situation, and how a segregated fund RRSP fits if guarantees and estate simplicity matter to you.

Book a free call →

Harpreet Singh · Licensed advisor (LLQP, Ontario) · Proudly Canadian. This page and its calculator are general information only — not financial, investment, insurance, or tax advice, and not a quote. RRSP contribution limits, the annual dollar maximum, and tax rules are set by the Government of Canada and may change; 2026 figures are per CRA and your official deduction limit appears on your Notice of Assessment. The refund estimate is simplified, based on a marginal rate you select, and does not reflect your full tax situation. Segregated fund investments are offered under an LLQP licence; other investment products may require a different licence and would be referred. Speak with a qualified advisor or accountant about your own situation.

Harpreet Singh, licensed advisor
Written and reviewed by
Harpreet Singh
Licensed Advisor · LLQP, Ontario

Harpreet is a licensed insurance and education-savings advisor based in Ontario, Canada. He helps families understand RESPs in plain language, claim every government grant they qualify for, and protect the plan with the right coverage — with straight answers and no pressure. More about Harpreet →

Reviewed July 2026 Figures per Canada.ca / CRA LinkedIn Book a free call
Scroll to Top