RRSP Calculator

The RRSP dollar limit for 2026 is $33,810, up from $32,490 for 2025. Your own new room for 2026 is 18% of your 2025 earned income or $33,810, whichever is less, minus your 2025 pension adjustment. Unused room from earlier years is added on top, so your deduction limit can be well above $33,810.

18% of earned income reaches $33,810 at $187,834 of 2025 earned income. Earned income is mostly employment and self-employment earnings, less some employment expenses and business or rental losses; CRA works it out in Chart 3 of Guide T4040.

The limit covers your own RRSPs, your pooled registered pension plan and specified pension plan, and what you put into your spouse's or common-law partner's RRSP. Direct transfers into an RRSP, such as from an FHSA, do not use it.

CRA's Chart 3 in Guide T4040 works it out in this order:

1. Take 18% of last year's earned income, or the year's dollar limit if that is less.
2. Subtract last year's pension adjustment (box 52 of the T4, box 034 of the T4A). If the result is negative, use $0.
3. Add any pension adjustment reversal for this year (T10 slips).
4. Add your unused RRSP deduction room at the end of last year.
5. Subtract your net past service pension adjustment. If the result is negative, your limit is $0.

For example, with $90,000 of 2025 earned income, a $4,000 pension adjustment and $12,000 of unused room: 18% is $16,200, less $4,000 is $12,200, plus $12,000 gives a 2026 deduction limit of $24,200.

Your notice of assessment shows the figure CRA has on file. Use it when it differs from your own estimate, for example because of a pension adjustment reversal or past service pension adjustment, which the calculator does not ask for.

You can have up to $2,000 of undeducted contributions above your deduction limit without penalty, if you were 18 or older at any time in the previous year. Anything beyond that is taxed at 1% for every month it stays in the plan. You report it on a T1-OVP return and pay within 90 days after the end of the year.

You may avoid the tax on an excess you withdraw before the end of the month you made it. CRA can also waive the tax if the excess came from a reasonable error and you are taking steps to remove it (Form RC2503).

December 31 of the year you turn 71 is the last day to contribute to your own RRSP. By then you have to withdraw it, transfer it to a RRIF or use it to buy an annuity. No tax is withheld on a direct transfer to a RRIF or on buying an annuity; RRIF payments are taxed as income when you receive them.

A withdrawal instead has tax withheld (10%, 20% or 30% depending on the amount; in Quebec 5%, 10% or 15% federal plus 14% Quebec on a single payment) and the full amount is added to your income for the year. The RRIF calculator shows the yearly minimum and the withholding on larger withdrawals. For money you want to keep tax-free after 71, compare the TFSA calculator.