RRSP tax savings calculator
Your estimated RRSP room for 2026 and how much income tax a contribution saves.
Want this number lower?
The Lower My Tax report takes these numbers, tests every legal way to cut the bill, and shows the saving of each in dollars, with what to do and by when.
The short version
- Enter your income, province and planned contribution, and the calculator shows the tax you save for 2026 and the saving per dollar.
- Example: a $10,000 contribution on an $85,000 Ontario salary saves about $2,965, close to 30 cents per dollar.
- New room is 18% of last year's earned income, up to $33,810 for 2026, minus any pension adjustment, plus unused room.
- The deadline for the 2026 tax year is 60 days into 2027. Contributions from that window can go on either year.
- Going more than $2,000 over your limit costs 1% a month on the excess.
RRSP Tax Savings Calculator
An RRSP contribution is a deal with the government, and like any deal, the terms matter. You get a deduction at this year's tax rate and pay tax at your future rate when the money comes out. The calculator shows the first half of the deal in dollars. The rest of this page helps you judge the second half.
Your Room
New room each year is 18% of the previous year's earned income, up to $33,810 for 2026, minus any pension adjustment from a workplace plan, plus unused room carried forward. Your exact number is on your latest notice of assessment and in My Account; see RRSP contribution limit.
Is an RRSP the right move for you this year?
Tell the assistant your income, province, RRSP room and plans. It compares the RRSP, TFSA and FHSA for your numbers and shows what each one saves.
What the Saving Really Is
The deduction saves tax at your rate this year. When the money comes out, it's taxed at your rate then. The best case is contributing in high-income years and withdrawing in low-income years. If your income is low this year, you can contribute now and save the deduction for a later year. TFSA or RRSP? See TFSA vs RRSP; buying a first home, the FHSA often beats both.
Over-Contributions
Going more than $2,000 over your limit costs 1% a month on the excess until it's removed. Check your room before a large contribution; see RRSP over-contribution. Taking money out later: RRSP withdrawals.
RRSP Calculator Questions
How much tax will I save with an RRSP contribution?
Roughly your marginal tax rate times the contribution. For example, $10,000 on an $85,000 Ontario salary saves about $2,965 in 2026. Enter your own numbers above.
What is the RRSP limit for 2026?
18% of your 2025 earned income, up to $33,810, minus any pension adjustment, plus unused room carried forward. Your exact room is on your notice of assessment.
When is the RRSP deadline for the 2026 tax year?
60 days after the end of 2026, which falls at the start of March 2027. Contributions made in the first 60 days of 2027 can be deducted on either the 2026 or 2027 return.
Should I contribute to an RRSP if my income is low?
Often a TFSA is better at low incomes. If you do contribute to an RRSP, you can carry the deduction forward to a year when your rate is higher.
What happens if I over-contribute to my RRSP?
There is a $2,000 buffer. Beyond that, the excess is taxed at 1% a month until you withdraw it or new room absorbs it.
Sources: CRA, T4040, RRSPs and other registered plans. Checked October 2026. Estimates only, based on the 2026 rules as last checked. CanadianTaxes.ai is not the Canada Revenue Agency and does not give tax advice.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.
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