Why does my actual refund differ?

Because your return accounts for tax credits, other income and tax already withheld at source. This tool isolates the RRSP contribution alone.

Free tool · 2026 federal brackets

RRSP tax
refund

Q: What is the 2026 RRSP contribution limit?

18% of your 2025 earned income, up to a maximum of $33,810 for 2026, minus any pension adjustment. Unused room carries forward indefinitely.

Q: What is the contribution deadline?

Contributions made in the first 60 days of the following year can be deducted against the previous year.

Q: RRSP or TFSA first?

If your current marginal rate is high and you expect a lower one in retirement, the RRSP wins. If it's low today, fill the TFSA first.

Contribute $6,000, get how much back? An RRSP contribution is deductible: it lowers your taxable income and generates a refund proportional to your marginal rate. Move the sliders.

Annual taxable income $70,000

RRSP contribution $6,000

Province of residence

Quebec receives a 16.5% federal abatement, applied automatically.

Your provincial marginal tax rate 10.0 %

An estimate to adjust: this rate varies by province and income. You'll find it on your latest return.

Estimated tax refund

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Net cost of the contribution

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Refund rate

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Your 2026 RRSP room (estimated)

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The federal portion uses the 2026 tax brackets with exact progressive calculation. The provincial portion is an estimate based on the marginal rate you enter. This is not tax advice.

Methodology

How the refund
is calculated

An RRSP contribution is a deduction, not a credit: it comes straight off your taxable income. The refund therefore equals the tax you would have paid on that slice of income, your marginal rate, not your average rate.

On the federal side, the tool applies the 2026 brackets (14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482, then 33%) with exact progressive math: if your contribution drops you into a lower bracket, that's accounted for. Quebec residents get the 16.5% federal abatement, applied automatically.

On the provincial side, the marginal rate varies by province and income, so the tool uses the one you enter, that way the result matches your actual situation rather than an average. You'll find it on your latest return or from your payroll department.

The part people miss

The refund is not
free money

This is the costliest misunderstanding about RRSPs. What you get back isn't a gift: it's a tax deferral. You skip the tax today on the amount contributed, but you'll pay it on withdrawal, at your marginal rate at that time.

So the RRSP wins if your marginal rate in retirement is lower than it is today, true for most salaried workers. Conversely, if your income is low now and you expect better later, the TFSA is often the better call: withdrawals there are tax-free. Calculate your TFSA room →

One habit changes everything: reinvest the refund instead of spending it. An $1,800 refund put back to work every year for 25 years is worth tens of thousands more at retirement. Project it here →

FAQ

Common questions

18% of your 2025 earned income, up to a maximum of $33,810 for 2026, minus any pension adjustment if you're in a workplace plan. Unused room carries forward indefinitely, your exact figure is on your notice of assessment.

Contributions made in the first 60 days of the following year can be deducted against the previous year. That's what drives the February rush every year.

Because your return accounts for much more: tax credits, other income, tax already withheld at source, CPP/QPP contributions. This tool isolates the effect of the RRSP contribution alone.

A $2,000 buffer is tolerated without penalty, but it isn't deductible. Beyond that, the CRA charges 1% per month on the excess.

Simple rule: if your current marginal rate is high and you expect a lower one in retirement, the RRSP wins. If it's low today, fill the TFSA first. Plenty of people use both.

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