RRSP tax savings calculator
An RRSP contribution is deducted from your income, so it saves tax at your top rate. Enter your income, what you plan to put in and your province.
| Tax without the contribution | $14,127.38 |
| Tax with the contribution | $12,644.88 |
| Tax saved | $1,482.50 |
| Contribution deducted | $5,000.00 |
| Cost after the refund | $3,517.50 |
Tax saved on a $5,000 contribution in Ontario
| Income | Tax saved | Saving rate | Real cost |
|---|---|---|---|
| $40,000 | $1,103 | 22.1% | $3,898 |
| $60,000 | $1,217 | 24.3% | $3,783 |
| $80,000 | $1,483 | 29.7% | $3,518 |
| $100,000 | $1,508 | 30.2% | $3,492 |
| $125,000 | $2,170 | 43.4% | $2,830 |
| $175,000 | $2,248 | 45% | $2,752 |
Your 2026 RRSP limit
You can deduct up to 18% of your earned income from the previous year, to a maximum of $33,810 for 2026, plus any unused room carried forward, minus pension adjustments from a workplace plan. The exact figure is on your latest Notice of Assessment and in CRA My Account. Contributions made in the first 60 days of 2027 can still be deducted on your 2026 return.
How the saving is worked out
- Work out tax on your income without the contribution.
- Take the contribution off taxable income and work out tax again.
- The difference is your refund or lower balance owing. It comes when you file, unless your employer reduces tax at source.
The saving depends on the bracket you are in. The same $5,000 saves $1,159 on $60,000 in Alberta and $1,516 in Quebec.
RRSP or TFSA?
An RRSP gives the tax break now and taxes withdrawals later. A TFSA gives no deduction, but growth and withdrawals are tax-free, and the 2026 TFSA limit is $7,000. If you expect a lower tax rate in retirement than today, the RRSP usually wins; if your income is low now, the TFSA often does.
Common questions
How much tax will a $10,000 RRSP contribution save on $90,000 in Ontario?
$2,965 for 2026, so the contribution really costs $7,035.
What is the RRSP limit for 2026?
18% of your 2025 earned income, up to $33,810, plus unused room from earlier years. Over-contributions above a $2,000 buffer are taxed at 1% a month.
When do I get the refund?
When you file your 2026 return in spring 2027. To get it sooner, ask the CRA for reduced tax at source with form T1213, or contribute through a group RRSP at work.
Is the refund the same in every province?
No. On $60,000 a $5,000 contribution saves $1,217 in Ontario and $1,144 in British Columbia, because provincial rates differ.
Sources
Checked September 28, 2026. OneCalcs is independent and not affiliated with the Canada Revenue Agency, Revenu Québec or any provincial government.