2025-2026 RRSP Tax Savings Calculator for Canada
Use this RRSP tax savings calculator to estimate how a 2025 RRSP contribution could reduce your federal and provincial income taxes and whether you may end up owing taxes or getting a refund at filing time.
How this RRSP Tax Savings Calculator Works
This RRSP calculator estimates how much income tax you might save on your 2025 return by making a deductible RRSP contribution.
- We combine your employment income and other income to estimate your total 2025 income.
- We then calculate your estimated income tax twice: once without any RRSP contribution, and once after subtracting your RRSP contribution from income.
- The difference between these two tax amounts is shown as your estimated tax savings from RRSP.
- Using the income taxes paid you enter (for example, from box 22 of your T4s), we estimate whether you are likely to see a refund or owe additional tax.
- Federal and provincial/territorial tax brackets for the 2025 tax year are applied based on the province you select. CPP, EI and most detailed credits are not affected by RRSP contributions, so they are excluded to keep the estimate simple.
Always check your real RRSP deduction room on your latest CRA Notice of Assessment or CRA My Account before contributing, and consider speaking with a tax professional for personalized advice.
How does an RRSP work?
A Registered Retirement Savings Plan (RRSP) is a tax-advantaged account designed to help Canadians save for retirement. Here's how it works:
Contributions are tax-deductible. When you contribute to an RRSP, you can deduct that amount from your taxable income for the year. If you earn $70,000 and contribute $10,000 to your RRSP, you only pay tax on $60,000. This typically results in a tax refund when you file your return.
Growth is tax-deferred. Any investment income you earn inside your RRSP—interest, dividends, or capital gains—grows tax-free as long as it stays in the account. You don't pay tax on this growth until you make a withdrawal.
Withdrawals are taxed as income. When you take money out of your RRSP, it's added to your taxable income for that year. The idea is that you'll withdraw during retirement when your income (and tax rate) may be lower than during your working years.
What is the RRSP contribution limit?
Your personal RRSP contribution limit is made up of two parts: your new contribution room for the current year plus any unused room carried forward from previous years.
New contribution room for 2025:
- 18% of your 2024 earned income, up to a maximum of $32,490
- Minus any pension adjustment if you have a workplace pension plan
Unused contribution room:
- Any contribution room you didn't use in past years carries forward indefinitely
- This accumulates over time, so if you haven't been contributing regularly, you may have a large amount of unused room available
Your total RRSP deduction limit = new room for 2025 + unused room from previous years.
For example, if you have $15,000 in unused room from previous years and you earn new room of $10,000 for 2025, your total available contribution room is $25,000.
Important: Over-contributing beyond your limit can result in a 1% penalty per month on the excess amount. The CRA does allow a $2,000 lifetime over-contribution buffer, but amounts beyond that are penalized.
For current official RRSP contribution limits and guidelines, visit the Canada Revenue Agency's RRSP page .
How do I calculate my RRSP contribution room?
You don't have to calculate your RRSP contribution room manually—the CRA does this for you. Here's how to find it:
Check your Notice of Assessment
Every time you file a tax return, the CRA sends you a Notice of Assessment. Near the top of this document, you'll see a section labeled "RRSP Deduction Limit Statement" that shows your available contribution room for the upcoming year.
Log into CRA My Account
You can access your current RRSP deduction limit at any time by logging into your
CRA My Account
online. This is the most up-to-date source and reflects any recent contributions or adjustments.
Call the CRA's Tax Information Phone Service (TIPS)
You can also call 1-800-267-6999 and use the automated system to check your RRSP deduction limit. You'll need your Social Insurance Number and some information from a recent tax return.
How contribution room is calculated: examples
Example 1: New graduate
- Jamie earned $45,000 in 2024 (their first year of full-time work)
- They have no previous RRSP room because they just started working
- New room for 2025: $45,000 x 18% = $8,100
- Total available room: $8,100
Example 2: Steady earner with unused room
- Alex has been working for 10 years but has never contributed to an RRSP
- Their 2024 income was $70,000
- They have $40,000 in unused room carried forward from previous years
- New room for 2025: $70,000 x 18% = $12,600
- Total available room: $40,000 + $12,600 = $52,600
Example 3: High earner with pension adjustment
- Morgan earned $120,000 in 2024
- Without a pension, they would have: $120,000 x 18% = $21,600 in new room
- But Morgan participates in a workplace pension plan with a pension adjustment of $9,000
- New room for 2025: $21,600 - $9,000 = $12,600
- They have $5,000 in unused room from previous years
- Total available room: $5,000 + $12,600 = $17,600
Example 4: Maximum earner
- Taylor earned $200,000 in 2024
- 18% of $200,000 = $36,000, but this exceeds the annual limit
- New room for 2025: capped at $32,490
- They have no unused room because they maximize contributions every year
- Total available room: $32,490
Understanding how your RRSP contributions grow over time can be helpful—try our Compound Interest Calculator to project the long-term value of regular RRSP contributions.
Key Steps of the RRSP in Action
Let's walk through a simple example.
Sarah's situation:
- She earns $80,000 per year
- Her marginal tax rate is approximately 30%
- She contributes $10,000 to her RRSP
Immediate tax impact:
- Her taxable income drops from $80,000 to $70,000
- Tax savings: $10,000 x 30% = $3,000 refund
Long-term growth:
- Her $10,000 contribution grows tax-free inside the RRSP
- Assuming a 6% average annual return over 25 years, that single $10,000 contribution could grow to approximately $42,900
- If she contributes $10,000 every year for 25 years, she could accumulate over $548,000
At retirement:
- When Sarah withdraws the money, she pays tax at her retirement income rate
- If her retirement tax rate is 20% instead of 30%, she saves an additional 10% on that money
- She benefited from decades of tax-deferred growth and a lower withdrawal tax rate
You can estimate your own net income after RRSP contributions using our Net Salary Calculator to see how contributions affect your take-home pay.
Who can contribute to an RRSP?
There's no minimum age to open an RRSP, but you must meet a few basic requirements:
- Have a Social Insurance Number (SIN)
- Have earned employment or self-employment income
- Have filed at least one tax return to establish RRSP contribution room
Once these conditions are met, you can start contributing. The earlier you begin, the more time your investments have to grow through compound returns.
Newcomers to Canada can start contributing to an RRSP as soon as they have filed their first Canadian tax return that includes employment income. This creates contribution room for the following year.
Students and young workers often have limited contribution room in their early years, but any unused room carries forward indefinitely. Starting small and contributing consistently—even $50 or $100 per month—can build significant savings over time.
When you turn 71
You can contribute to your RRSP up until December 31 of the year you turn 71. After that, your RRSP must be converted into a Registered Retirement Income Fund (RRIF), used to purchase an annuity, or withdrawn as a lump sum (which would be fully taxable).
Once you reach this age, you can no longer make new RRSP contributions, even if you still have unused contribution room. However, if your spouse or common-law partner is younger than 71, you may be able to contribute to a spousal RRSP until they xreach that age.
What are the types of RRSPs?
There are several types of RRSPs designed for different situations:
Individual RRSP
The standard RRSP that most Canadians use. You open it in your own name, contribute your own money, and control all investment decisions. This is the most common type.
Spousal RRSP
One spouse contributes to an RRSP in the other spouse's name. The contributing spouse gets the tax deduction, but the account belongs to the spouse. This is a powerful income-splitting strategy for couples where one partner earns significantly more than the other. At retirement, withdrawals are taxed in the hands of the lower-income spouse, potentially reducing the household's overall tax burden.
Group RRSP
Offered through employers, a group RRSP allows automatic payroll deductions that go directly into your RRSP. Some employers match a portion of your contributions, which is essentially free money for your retirement. Contributions are deducted before tax is calculated on your paycheque, so you see immediate tax savings rather than waiting for a refund.
Self-directed RRSP
A self-directed RRSP gives you full control over investment choices. Instead of being limited to mutual funds or pre-set portfolios, you can hold stocks, bonds, ETFs, GICs, mutual funds, and other qualified investments all within one account. This option is popular with experienced investors who want more flexibility.
Pooled Registered Pension Plan (PRPP)
Available in some provinces for employees and self-employed individuals, PRPPs work similarly to group RRSPs but are designed for people who don't have access to a workplace pension plan.
What is the RRSP contribution deadline for this year?
The deadline to make RRSP contributions is 60 days after the end of the previous calendar year.
For contributions that count toward the 2025 tax year (January 1 to December 31, 2025), the deadline is March 2, 2026.
This timing can be confusing because you're actually allowed to contribute for a tax year for the first 60 days of the following year. So between January 1 and March 2, 2026, you can choose to apply your contributions to either the 2025 or 2026 tax year, as long as you have available contribution room.
Why the 60-day grace period? This gives you extra time after the year ends to maximize your RRSP deductions before filing your tax return. Many Canadians wait until February or early March to top up their RRSPs, especially if they're expecting a refund or want to reduce taxes owing.
Frequently Asked Questions (FAQs)
How much will I save in taxes with an RRSP contribution?
Your tax savings depend on your marginal tax rate. If you're in a 30% tax bracket and contribute $10,000 to your RRSP, you'll save approximately $3,000 in taxes. Higher earners in higher tax brackets save more per dollar contributed.
When can I withdraw from my RRSP without penalty?
You can withdraw from your RRSP at any time, but withdrawals are added to your taxable income and taxed at your current rate. Two exceptions allow penalty-free withdrawals: the Home Buyers' Plan (up to $60,000 to buy a first home) and the Lifelong Learning Plan (up to $20,000 for education). Both must be repaid over time.
What happens if I over-contribute to my RRSP?
The CRA allows a $2,000 lifetime buffer for over-contributions. Beyond that, you'll pay a 1% penalty per month on the xcess amount. If you accidentally over-contribute, you can withdraw the excess or carry it forward to the next year once you have new contribution room.
Can I contribute to my RRSP if I have a workplace pension?
Yes, but your RRSP contribution room will be reduced by a pension adjustment based on your employer pension contributions. Your Notice of Assessment shows your exact available room after this adjustment is applied.
Should I contribute to an RRSP or TFSA first?
It depends on your situation. RRSPs are better if you're in a high tax bracket now and expect to be in a lower bracket in retirement. TFSAs are better if you're in a low tax bracket, need flexibility for withdrawals, or want tax-free growth. Many Canadians benefit from contributing to both.
Do RRSP contributions reduce my CPP and EI deduction
No. RRSP contributions reduce your taxable income but don't affect CPP or EI calculations, which are based on your gross employment income before RRSP deductions.
How do I know my RRSP contribution limit?
Your RRSP deduction limit is shown on your latest Notice of Assessment from the CRA. You can also check it anytime by logging into your CRA My Account online or calling the CRA's automated Tax Information Phone Service at 1-800-267-6999.
Can I contribute to a spousal RRSP?
Yes. You can contribute to an RRSP in your spouse's name using your own contribution room. You get the tax deduction, but the account belongs to your spouse. This is a valuable income-splitting strategy for couples with different income levels.
What is the RRSP contribution deadline for 2025?
The deadline to contribute for the 2025 tax year is March 2, 2026. This gives you the first 60 days of 2026 to make contributions that count toward your 2025 taxes.
What happens to my RRSP when I turn 71?
You must close your RRSP by December 31 of the year you turn 71. At that point, you can convert it to a RRIF (Registered Retirement Income Fund), purchase an annuity, or withdraw the funds as a lump sum (which would be fully taxable).