Tax · Canada
RRSP refund calculator
Quick answer: your RRSP refund is roughly your contribution times your marginal tax rate. In 2026 that is about $1,800 back on $10,000 at the lowest marginal rates and over $5,000 at the highest, depending on province and income (table below). Enter your numbers for an exact estimate.
An RRSP contribution is a deduction, so it saves tax at your marginal rate: contribution multiplied by the combined federal and provincial rate on your top dollar of income. This calculator shows that saving for your province and income.
Source: CRA — How contributions affect your RRSP/PRPP deduction limit; CRA — MP, DB, RRSP, DPSP and TFSA limits, YMPE and YAMPE · As of
Cite this page: TNAADO Tools, “RRSP Tax Savings Calculator 2026”, https://tools.tnaado.ca/calculators/tax/rrsp-tax-savings/
Saving for a first home? Contributions to the FHSA are deductible too: try the FHSA calculator.
Want the whole picture first? The Ontario income tax calculator shows your federal and Ontario tax, surtax and effective rate before any RRSP deduction.
Looking for the 2026 limit or how your balance grows? See the RRSP calculator.
Inputs
Tax savings
Fill the form and press Calculate.
How an RRSP refund works
Every dollar you contribute (and claim) reduces your taxable income by one dollar. The tax saved is the marginal tax rate times the contribution, so the same $5,000 returns far more at a $120,000 income than at $50,000. That saving usually arrives as a bigger refund or a smaller balance owing when you file; if your employer withholds less tax because of an RRSP payroll deduction, it arrives sooner. The effective cost of a contribution is the contribution minus the tax saved: $10,000 at a 30% saving really costs $7,000 of today’s money.
A large contribution can pull part of your income into a lower bracket, so the saving on the last dollars is smaller than on the first. The calculator above works this out dollar by dollar and shows the contribution that would take you down one marginal-rate step.
Clawbacks. The deduction lowers your net income, and net income is what the CRA uses to test several income-tested benefits: the OAS recovery tax, the Canada Child Benefit and the GST/HST credit. A contribution can therefore also raise those benefits or reduce a clawback. That extra value is not included in the estimate above. See the CRA pages on OAS recovery tax, the Canada Child Benefit and the GST/HST credit for current thresholds.
Contribution room estimator
Your RRSP deduction limit for 2026 is 18% of your 2025 earned income, up to the 2026 dollar limit of $33,810, plus unused room from earlier years, minus any pension adjustment (PA). Your exact figure is on your notice of assessment; this is only a quick check.
Deadline: contributions made in the first 60 days of 2027 (until March 1, 2027) can be claimed on your 2026 return. Source: CRA, MP, RRSP, DPSP, ALDA, TFSA, FHSA and YMPE limits, checked October 2026.
Combined marginal tax rate by province, 2026
The combined federal and provincial rate on your next dollar of taxable income, which is also roughly the share of an RRSP deduction that comes back as tax saved. Computed by this page’s own engine from the 2026 federal and provincial brackets in CRA T4127 (122nd edition, January 1, 2026), including the Ontario surtax. Quebec is an estimate because Revenu Québec, not the CRA, publishes Quebec’s own brackets.
| Province or territory | $50,000 | $80,000 | $120,000 | $200,000 |
|---|---|---|---|---|
| Alberta | 22.00% | 30.50% | 36.00% | 42.29% |
| British Columbia | 19.60% | 28.20% | 38.29% | 46.09% |
| Manitoba | 26.75% | 33.25% | 43.40% | 47.55% |
| New Brunswick | 23.40% | 34.50% | 42.00% | 48.79% |
| Newfoundland and Labrador | 28.50% | 35.00% | 41.80% | 47.09% |
| Northwest Territories | 19.90% | 29.10% | 38.20% | 43.34% |
| Nova Scotia | 28.95% | 37.17% | 43.50% | 50.29% |
| Nunavut | 18.00% | 27.50% | 35.00% | 40.79% |
| Ontario | 19.05% | 29.65% | 43.41% | 48.26% |
| Prince Edward Island | 27.47% | 37.10% | 43.62% | 49.29% |
| Quebec (estimate) | 25.69% | 36.12% | 45.71% | 50.21% |
| Saskatchewan | 24.50% | 33.00% | 38.50% | 43.79% |
| Yukon | 20.40% | 29.50% | 36.90% | 42.23% |
Income here is taxable income before the RRSP deduction. Rates exclude other credits and benefit clawbacks.
Three worked examples (2026 tax rules)
1. $50,000 income, Ontario, $5,000 contribution
Tax falls from $6,565.78 to $5,613.28, a saving of $952.50 (19.05%). The whole contribution sits in the 19.05% marginal band, so the effective cost is $4,047.50.
2. $80,000 income, Alberta, $5,000 contribution
Tax falls from $15,247.20 to $13,722.20, a saving of $1,525.00 (30.50%). Effective cost: $3,475.00.
3. $120,000 income, British Columbia, $10,000 contribution
Tax falls from $26,715.05 to $23,374.62, a saving of $3,340.43 (33.4%), less than the 38.29% headline rate because the deduction drops your marginal rate to 31.00% partway through. Effective cost: $6,659.57.
TNAADO Inc. · Toronto
Why an RRSP deduction is a loan against your future rate
An RRSP contribution is a deduction, not a credit, so it comes off the top of your income and saves tax at your marginal rate rather than at some flat percentage. Contribute $10,000 in a year when your top dollar is taxed at 43% and you defer roughly $4,300 of tax. That is the entire mechanism, and it is also why the refund is not free money: every dollar deducted now is taxed as ordinary income when it comes back out.
The mistake people make. Contributing in a low-income year. The deduction is worth your marginal rate today set against your marginal rate in retirement, so contributing at 20% and withdrawing at 30% is a loss. You can contribute now and carry the deduction forward to a higher-income year: the contribution and the deduction are two separate decisions, and most people take both in the same year without realising they had a choice.
Frequently asked questions
How much is the RRSP refund on a $5,000 contribution?
Roughly $5,000 times your combined marginal rate. For 2026 that is about $900 to $1,450 at $50,000 of income depending on province (Ontario $952.50), about $1,525 at $80,000 in Alberta, and $2,000 to $2,500 at $200,000 income. Use the calculator for your own province and income.
Is an RRSP a deduction or a tax reduction?
A deduction. It lowers taxable income, so the saving equals the contribution times your marginal rate. A tax credit, such as the basic personal amount, instead reduces the tax itself by a fixed amount regardless of your bracket.
Is an RRSP or a TFSA better for me?
The RRSP tends to win when your marginal rate now is higher than the rate you expect when you withdraw, since you deduct at the high rate and pay at the lower one. A TFSA tends to win when your rate is low now, or if you may need the money early: TFSA withdrawals are not taxed and do not affect income-tested benefits. Many people use both. See the TFSA calculator.
Can I carry an RRSP deduction forward?
Yes. You can contribute now and claim the deduction in any later year, which lets you save it for a higher-income year when it is worth more. Unused contribution room also carries forward indefinitely.
What is the RRSP contribution deadline for the 2026 tax year?
March 1, 2027, the 60th day of 2027. Contributions after that count for the 2027 tax year.
Related calculators
TFSA calculator · Canadian income tax calculator (shows your marginal and average rates) · RRSP growth calculator · Tax refund estimator.
Sources: CRA T4127 payroll deductions formulas, 122nd edition, effective January 1, 2026 (federal and provincial rates); CRA limits table above (RRSP limit $33,810, 18% rule). As of October 2026.
Worked example: a $10,000 RRSP contribution on $100,000 in Ontario
With $100,000 of income in Ontario, a $10,000 RRSP contribution lowers federal tax from $14,393 to $12,343 and Ontario tax from $6,378 to $5,370. Total tax falls from $20,771 to $17,712: a saving of $3,058, or 30.6% of the contribution. The marginal rate shown is 31.5%.
| Income | Contribution | Tax saved | Share of contribution saved | Marginal rate at that income |
|---|---|---|---|---|
| $60,000 | $6,000 | $1,485 | 24.8% | 29.7% |
| $100,000 | $10,000 | $3,058 | 30.6% | 31.5% |
| $150,000 | $15,000 | $6,511 | 43.4% | 45.0% |
- The saving is smaller than the marginal rate when the deduction crosses a bracket. At $60,000 the marginal rate is 29.7%, but only the top $1,477 of the deduction comes off income taxed at 20.5% federally; the rest comes off the 14% bracket, so the average saving is 24.8%.
- Higher income, bigger saving per dollar. The share saved rises from 24.8% to 30.6% to 43.4% as income rises.
- It is a deferral, not a gift. Withdrawals are taxed as income, so the saving is worth most when your rate in retirement is lower than your rate today.
Next steps: project the growth of what you contribute with the RRSP calculator, compare it with tax-free growth in the TFSA calculator, or see your whole tax picture with the income tax calculator.
How this is calculated
- Tax is calculated twice with the 2026 federal and provincial brackets: once on your income, once on your income minus the RRSP contribution.
- Tax saved = tax without the contribution − tax with it. Share of contribution saved = tax saved ÷ contribution.
- The annual limit shown is an estimate: 18% of the income you entered, capped at $33,810.
The CRA’s actual RRSP deduction limit is the lesser of 18% of your previous year’s earned income and the annual dollar limit ($33,810 for 2026), less any pension adjustment, plus unused room carried forward (CRA, How contributions affect your RRSP deduction limit; CRA, limits table; checked 1 October 2026). Check your own room on your CRA notice of assessment or My Account. Rates and thresholds are the 2026 federal brackets on the CRA’s tax rates page and the payroll formulas in T4127. The result does not model Ontario Health Premium or credits other than the basic personal amount.
Estimates for education, not tax or investment advice. Over-contributing beyond your room can trigger a penalty tax.
Disclaimer
Estimates for education only, not tax, financial or legal advice. The calculator models federal and provincial income tax on the income you enter and the basic personal amount only; it omits other credits, the Ontario Health Premium and Quebec specifics. Verify your RRSP deduction limit on your notice of assessment or in CRA My Account before contributing: over-contributions above the $2,000 buffer are taxed 1% a month.