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The CRA RRSP limit for 2026 is 18% of your earned income from the previous year, capped at $33,810. Add room you never used, and subtract a pension adjustment if you belong to a workplace plan. The CRA works that number out for you and prints it on your notice of assessment, so you don’t have to guess.
Where does the CRA show my RRSP room?
Your latest notice of assessment lists your deduction limit for the year. It’s also in your CRA account online. Use that figure, not your own arithmetic, because the CRA already knows your pension adjustment and any reversal.
The formula is short. Start with room you didn’t use last year. Add 18% of your earned income, capped at the dollar limit. Subtract your pension adjustment, and add back a reversal if you had one.
| Item | 2025 tax year | 2026 tax year |
|---|---|---|
| Dollar limit | $32,490 | $33,810 |
| Earned income rate | 18% | 18% |
| Over-contribution buffer | $2,000 | $2,000 |
| Contribution deadline | March 2, 2026 | March 1, 2027 |
That last cell matters right now, in October 2026. The CRA’s page on how contributions affect your deduction limit gives the 2025 window in one line.
Contributions made to your RRSP, PRPP or SPP or your spouse’s RRSP or SPP from March 4, 2025 to March 2, 2026 qualify.
How contributions affect your RRSP deduction limit, CRA, canada.ca
It doesn’t print the 2026 date. The usual window runs 60 days past the end of the calendar year, which gives March 1, 2027. The CRA page hasn’t printed that date yet, so check the CRA page once the new year starts.
How much does a contribution save you?
Say you earned $90,000 in Ontario last year, have no pension plan and contribute $10,000. The RRSP tax savings calculator puts your room at $16,200 (18% of $90,000), so the contribution fits. Income tax drops from $17,034 to $14,069. You save $2,965, which is 29.6% of what you put in. The real cost of the contribution is $7,035.
Pull the same money out later and it’s taxed as income. That makes it a deferral, and it only pays off if your rate in retirement is lower than today’s.
What happens if I put in too much?
You’re allowed $2,000 over your limit. Past that, the CRA page says you pay a tax of 1% per month on the excess for as long as it stays in the plan. So $5,000 over the buffer would cost about $50 a month until you fix it. That’s an example of the rate, and the CRA decides the real bill.
Doing it by accident is easy. A new employer pension changes your pension adjustment, and a last-minute lump sum in February gets counted against a limit you haven’t checked. Look at the notice of assessment first. Then, before you hit send on a payment, check your contributions for the year so far. Between a payroll deduction plan and a few top-ups, the total creeps up on people.
What should you do before the deadline?
- Pull up your latest notice of assessment and write down the deduction limit.
- Add up what you’ve already put in this year, including any payroll deductions to a group RRSP.
- Subtract the second figure from the first. That’s the room left, plus the $2,000 buffer you shouldn’t plan on using.
- Decide whether to deduct this year or carry the receipt forward to a higher-income year. Unused room keeps rolling forward, so there’s no rush to claim everything at once.
How is an RRSP withdrawal taxed?
The bank withholds tax at the source on anything you take out, and the rate rises with the amount. Outside Quebec it’s 10% up to $5,000, 20% from $5,000 to $15,000, and 30% above that. The withholding is only an advance.
Picture an Ontario resident with other income of $60,000 who takes out $10,000. The RRSP withdrawal tax calculator shows $2,000 withheld and $8,000 paid to you. The real tax is $2,965, so you owe $965 more when you file. That’s the part that surprises people at tax time: the amount on the bank’s receipt wasn’t the final bill. The same calculator notes that Home Buyers’ Plan and Lifelong Learning Plan withdrawals aren’t taxed if you repay them on schedule.
If you’re deciding where to park money you may need sooner, compare the TFSA room calculator before you lock it in.
Mistakes with CRA RRSP rules
Confusing a contribution with a deduction comes first. You can contribute now and deduct in a later year, which is useful when this year’s income is low. Then there’s the age cutoff. Contributions stop at the end of the calendar year you turn 71, and a spouse’s plan follows the same cutoff for your spouse.
Four costs never qualify as a deduction: administration fees, brokerage costs, interest on money you borrowed to contribute, and capital losses inside the plan. For the tax you’ll actually pay on your return, try the income tax calculator.
Where the numbers come from
Limits, the formula, the buffer, the penalty rate and the 2025 deadline come from Canada Revenue Agency pages on RRSP contributions and on registered plan limits, read in September 2026. The withholding rates come from the CRA’s page on tax rates on withdrawals. The example figures are from our own calculators using 2026 Ontario and federal rates. We’re an independent site, and no government body is behind it.
Frequently asked questions
What is the RRSP dollar limit for 2026?
It is $33,810. Your own limit is the lesser of that and 18% of last year's earned income, plus unused room, minus any pension adjustment.
How much can I over-contribute?
The CRA allows a $2,000 buffer. Above that, the CRA page says you pay 1% a month on the excess.
What was the 2025 tax year deadline?
Contributions made from March 4, 2025 to March 2, 2026 counted for 2025.
Can I contribute after 71?
You can contribute until December 31 of the year you turn 71. A spouse's plan can take contributions until your spouse turns 71.
Is tax withheld on an RRSP withdrawal the final tax?
No. Outside Quebec 10%, 20% or 30% is withheld by rate band, but the withdrawal is taxed as income when you file.
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