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Go over your RRSP limit by up to $2,000 and the CRA lets it slide. Go past that and a monthly tax of 1% hits the excess until you fix it. So the RRSP limit is a line you can cross a little, but it pays to know where it sits.
What happens if you pass the RRSP limit?
The $2,000 cushion is there so a small slip doesn’t cost you anything. Above it, the charge is 1% of the excess for each month it stays in the plan.
Here’s a case from our RRSP calculator. Someone earned $90,000 last year and has $16,200 of room. They put $20,000 in. That’s $3,800 over. The calculator flags it, because the excess is past the $2,000 buffer.
The part above the buffer is $1,800, so the tax works out to $18 a month on that amount if nothing changes (our arithmetic from the 1% rule). Small money. But it never stops, and you’d also be locking savings into an account where you can’t deduct them.
Can you still claim the extra?
No. Only the part inside your room is deductible. In the same example the calculator shows a saving of $6,080 on the $20,000, but it treats the whole amount as claimed, including the $3,800 you have no room for. Read that number as a ceiling, not as the refund to expect.
The usual fix is to take the excess back out. Don’t guess at the paperwork, though. We couldn’t confirm the forms and the timing on a CRA page, so ask the CRA or your plan provider how to withdraw an over-contribution before you do it.
Key RRSP limit figures
| Item | Figure |
|---|---|
| Dollar limit for 2025 | $32,490 |
| Dollar limit for 2026 | $33,810 |
| Earned income rate | 18% of the prior year’s earned income |
| Over-contribution buffer | $2,000 |
| Penalty above the buffer | 1% per month of the excess |
| Last year you can contribute | The year you turn 71 |
| Contribution window for the 2025 tax year | 4 March 2025 to 2 March 2026 |
The 2026 tax year deadline isn’t printed on a CRA page we could find. The window normally closes 60 days into the new year, but check the CRA’s dates page before you rely on it.
When does the RRSP limit stop mattering?
When the year you turn 71 closes. By then you have to close the plan, turn it into a RRIF or buy an annuity. You can still make a final contribution in that year if you have room, though you may ask whether the deduction helps at that stage.
After that, the question changes from how much you may add to how much you must take out. The RRSP withdrawal tax calculator shows what comes off a payout. A $15,000 withdrawal has 20% withheld at the bank, which is $3,000, but the real tax depends on your other income.
Ways people end up over the limit
A few patterns come up again and again. A raise that hasn’t been counted yet is one, since the limit follows last year’s pay. Pension adjustments arriving late is another. Then there’s the person with two accounts at different banks who tops up both without adding the two together.
Check your room on the notice of assessment before you deposit anything large. If your year was unusual, say a bonus or a job change, compare it with the income tax calculator to see what a deduction does to your bill.
Where the numbers come from
The dollar limits, the 18% rule, the $2,000 buffer and the 1% monthly tax come from the Canada Revenue Agency’s RRSP limit table and its pages on contributions and on turning 71. The worked example is from our calculator using 2026 Ontario rates.
Frequently asked questions
How much can I go over the RRSP limit?
The CRA tolerates $2,000 of over-contribution. Past that, a tax of 1% a month applies to the excess.
Can I deduct the amount I put in over my limit?
No. Only contributions within your deduction limit can be claimed, though an unclaimed amount within your room carries forward.
What is the RRSP limit for 2026?
The dollar limit is $33,810, or 18% of last year's earned income if that is less, before unused room and pension adjustments.
When is the last day I can contribute?
The last day is the end of the year you turn 71. The 2025 tax year window ran from 4 March 2025 to 2 March 2026.
Where do I see how much room I have?
On your notice of assessment and in your CRA online account.
All rrsp and retirement calculators
- RRSP, TFSA, FHSA and retirement income in Canada
How the RRSP, TFSA and FHSA differ, the 2026 limits, what happens when you withdraw, and where CPP and OAS fit into your retirement income
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.