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An RRSP contribution lowers your taxable income, so your refund goes up or your balance owing goes down. On $90,000 of income in Ontario, a $10,000 contribution saves $2,965 in tax, so the real cost is $7,035. You claim it on your RRSP tax return for that year, up to your RRSP deduction limit.
How do you claim the RRSP deduction?
You don’t report the contribution as income. You claim it as a deduction, and it comes off your income before tax is worked out. That can include money paid into your own plan and money paid into your partner’s. A contribution from an earlier year that you never claimed can be used now too.
You can contribute during the year and in the first 60 days after it. For 2025 that window ran from March 4, 2025 to March 2, 2026. For 2026 the last day should be March 1, 2027, but we worked that out from the 60 day rule and didn’t read it on an official page. Keep the receipts, because the amounts on them are what you claim.
What are the RRSP numbers for 2026?
| Item | Amount |
|---|---|
| Share of prior-year earnings that creates room | 18% |
| Dollar limit for 2026 | $33,810 |
| Dollar limit for 2025 | $32,490 |
| Over-contribution allowed without penalty | $2,000 |
| Penalty above that | 1 per cent monthly |
| Last year to contribute | The year you turn 71 |
Your room for a year is your unused room from before, plus the smaller of the dollar limit or 18 per cent of what you earned the year before, minus your pension adjustment. Don’t guess at it. The number is printed on your latest notice of assessment, so start there.
How much tax does an RRSP save at different incomes?
Your bracket sets the saving. Here’s what the RRSP calculator gives for three people in Ontario, each claiming part of their room.
| Taxable income | Contribution | Tax saved | Share saved |
|---|---|---|---|
| $60,000 | $5,000 | $1,217 | 24.3% |
| $90,000 | $10,000 | $2,965 | 29.6% |
| $200,000 | $20,000 | $9,568 | 47.8% |
Take the middle case. Income tax is $17,034 before the contribution and $14,069 after it, and room is $16,200, so the $10,000 fits. If your employer already withholds tax at the usual rate, the saving comes as a bigger refund. The tax refund calculator shows the refund for your own numbers, and the RRSP calculator checks the contribution against your room.
Should you claim it this year or wait?
You don’t have to claim a contribution in the year you make it. Unused contributions carry forward with no time limit, so a deduction can wait for a later return with a bigger income and a steeper rate. Expecting a big bonus or a jump in pay? Waiting may pay off. The marginal tax rate calculator gives the rate on your next dollar, and that’s the rate your deduction removes.
Mistakes and limits
- Go over your limit by more than $2,000 and a monthly tax of one per cent of the excess applies.
- Administrative fees, brokerage charges and loan interest aren’t deductible.
- A workplace pension cuts your room through the pension adjustment.
- Withdrawals are taxed as income, so the saving is often a deferral. Test it with the RRSP withdrawal tax calculator.
- Buying a first home? An FHSA may suit you better, and the FHSA calculator compares the deduction.
- The calculator uses one province at a time and doesn’t model credits beyond the basics.
Where the numbers come from
The 18% rule, the $33,810 and $32,490 dollar limits, the 60 day window and the $2,000 buffer come from Canada Revenue Agency pages on RRSP contributions and deduction limits, read in September 2026. Tax results use the 2026 federal and Ontario tax data on this site. The 2026 deadline is derived, not printed. This site isn’t connected to the CRA or any government, so confirm your own room on your notice of assessment.
Frequently asked questions
How does an RRSP affect my tax return?
The contribution is a deduction that lowers your taxable income. On $90,000 of income in Ontario, a $10,000 contribution saves $2,965 in tax.
Where do I find my RRSP deduction limit?
On your latest notice of assessment. It combines unused room with the smaller of $33,810 or 18 per cent of the prior year's earnings, minus a pension adjustment.
Can I claim a contribution in a later year?
Yes. Unused contributions carry forward with no time limit, so a later year with a steeper rate can use them.
What happens if I contribute too much?
You can go $2,000 over your limit without penalty. Past that, a monthly tax of one per cent applies to the excess.
Does the 60 day rule count for my return?
Yes. Contributions made in the first 60 days after year end can be claimed for that year, and for 2025 the last day was March 2, 2026.
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.