About the RRSP Tax Refund Calculator
This RRSP tax refund calculator estimates how much income tax you save by contributing to a Registered Retirement Savings Plan for the 2026 tax year. Enter your taxable income, the amount you plan to contribute and your province or territory; it calculates your federal and provincial tax before and after the RRSP deduction and shows the difference — the refund (or smaller balance owing) you can expect when you file your 2026 return in spring 2027.
Because the deduction comes off the top of your income, it saves tax at your marginal rate, and a large contribution can drop you into a lower bracket so the average saving per dollar falls. The calculator shows both rates and a chart of the saving at different contribution sizes, so you can find the point where extra contributions start saving less. Contributions made by 1 March 2027 (the first 60 days of 2027) can be deducted on your 2026 return.
It uses CRA’s 2026 federal and provincial brackets and basic personal amounts, the Ontario surtax and Health Premium. Your deduction is capped at the limit you enter — the 2026 maximum is $33,810, but your own limit is on your notice of assessment (18% of last year’s earned income plus unused room, minus any pension adjustment). Other credits, provincial low-income reductions and income-tested benefits are not modelled, and Quebec and Manitoba are not covered.
With the default inputs, the tax saved by your rrsp deduction is $2,965.00. Change any value above to recalculate instantly.
How to use the rrsp tax refund calculator
- 1Choose your province or territory.
- 2Enter your expected 2026 taxable income before any RRSP deduction.
- 3Enter how much you plan to contribute and deduct.
- 4Enter your RRSP deduction limit from your notice of assessment.
- 5Read the tax saved, your marginal rate and the after-tax cost of contributing.
Formula and method
An RRSP contribution is a deduction, so it reduces taxable income dollar for dollar. The saving is the difference between your 2026 federal and provincial tax at your current income and at the lower income. Federal tax uses the 14%, 20.5%, 26%, 29% and 33% brackets with the basic personal amount credit ($16,452, reduced for incomes above $181,440); provincial tax uses your province’s 2026 brackets and basic personal amount, plus the surtax and Health Premium in Ontario.
The marginal rate is the tax on the last $100 of income before the deduction. When the deduction crosses a bracket threshold, the average saving per dollar is lower than the marginal rate. The “refund” is the tax saved; whether it arrives as a refund depends on how much tax was withheld from your pay.
- tax()
- 2026 federal + provincial income tax after basic personal amounts
- Deduction limit
- 18% of prior-year earned income up to $33,810, plus unused room, minus pension adjustment
Worked examples
$10,000 RRSP on $85,000 in Ontario
Income of $85,000 and $75,000 are both in the 20.5% federal and 9.15% Ontario brackets, so every dollar saves 29.65%: $2,965. The contribution really costs you $7,035.
$20,000 on $150,000 in Alberta
Between $130,000 and $150,000 you pay 26% federal and 10% Alberta tax, a 36% marginal rate, so the $20,000 deduction saves $7,200.
$5,000 on $60,000 in BC
The first $1,477 of the deduction comes off the 20.5% federal bracket plus 7.7% BC (28.2%); below $58,523 the remaining $3,523 saves only 14% + 7.7% (21.7%), so the total is $1,181 rather than $1,410.
$8,000 on $45,000 in Nova Scotia
At $45,000 the marginal rate is 14% federal plus 14.95% Nova Scotia = 28.95%, and the whole deduction stays in those brackets, saving $2,316.
Frequently asked questions
How much tax will I save with an RRSP contribution?+
Roughly your marginal tax rate times the amount you deduct. In 2026 that ranges from about 20% for lower incomes to over 50% at the top brackets in some provinces. The calculator works it out exactly for your income and province.
What is the RRSP deduction limit for 2026?+
Your limit is 18% of your 2025 earned income up to $33,810, minus any pension adjustment, plus unused room carried forward. The exact figure is printed on your latest notice of assessment and in CRA My Account.
What is the RRSP deadline for the 2026 tax year?+
Contributions made in 2026 or in the first 60 days of 2027 — up to 1 March 2027 — can be deducted on your 2026 return. You can also contribute now and save the deduction for a later year.
Do I have to deduct my RRSP contribution in the same year?+
No. You can carry forward an undeducted contribution and claim it in a future year when your income, and therefore your marginal rate, is higher. This can increase the total tax saved.
Why is my refund lower than my marginal rate times my contribution?+
If the deduction pushes your taxable income into a lower bracket, the part below the threshold saves tax at the lower rate. The average saving per dollar is then less than the marginal rate shown at your starting income.
Will I pay tax when I withdraw from my RRSP?+
Yes. Withdrawals are taxable income in the year you take them, with withholding at source, unless made under the Home Buyers’ Plan or Lifelong Learning Plan. The aim is to deduct at a high rate and withdraw at a lower rate in retirement.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.