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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. On the return you enter the amount on line 20800, and the CRA’s page on the RRSP deduction at line 20800 says to attach Schedule 7 if you’re required to fill it 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. The CRA’s page asks for receipts for every contribution in that window, including ones you aren’t deducting this year.
What are the RRSP numbers for 2026?
| Item | Amount |
|---|---|
| Share of prior-year earnings that creates room | 18% |
| Dollar limit for 2027 | $35,390 |
| 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. The CRA’s table of pension, RRSP and TFSA limits lists both dollar limits above.
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, a nice few bucks back at tax time. 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.
What does the contribution really cost you?
Think of it per dollar. At $90,000 the $10,000 contribution saves $2,965, so each dollar you put in costs about 70 cents once the refund lands ($7,035 divided by $10,000). At $60,000 it’s closer to 76 cents, and at $200,000 about 52 cents. The refund only shows up after you file, though, so you have to find the full $10,000 up front. If the cash is tight, a smaller contribution you can afford beats a big one on a credit card.
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.
What this page is based on
The 18% rule, the $35,390, $33,810 and $32,490 dollar limits, the 60 day window and the $2,000 buffer come from the CRA table of pension, RRSP and TFSA limits and its pages on RRSP contributions and the line 20800 deduction, checked in November 2026. Tax results use the 2026 federal and Ontario tax data on this site. The 2026 deadline is derived, not printed. This site is not connected to the CRA or any government, so confirm your own room on your notice of assessment. See also our RRSP deadline and limit guide.
Frequently asked questions
How does an RRSP affect my tax return?
The contribution is a deduction, so it lowers your taxable income before tax is worked out. You enter it on line 20800 and attach Schedule 7 if required. On $90,000 of income in Ontario, a $10,000 contribution saves $2,965 in tax by our 2026 calculator, so the real cost is $7,035. Your bracket sets the size of the saving.
Where do I find my RRSP deduction limit?
On your latest notice of assessment, or in CRA My Account. Your room is your unused room from earlier years, plus the smaller of the dollar limit ($33,810 for 2026) or 18 per cent of last year's earned income, minus any pension adjustment. Do not guess it, because the number on the notice is the one the CRA uses.
Can I claim an RRSP contribution in a later year?
Yes. Unused contributions carry forward with no time limit, so you can hold a deduction back for a year with a higher income and a steeper rate. Keep the receipts and track what you have not yet claimed. Claiming later only helps if the rate is higher then, since the deduction removes tax at your rate that year.
What happens if I contribute too much to my RRSP?
You can be $2,000 over your limit without penalty. Past that, a tax of one per cent a month applies to the excess for each month it stays in the plan. Withdrawing the extra and fixing it quickly limits the cost, and the CRA has a form to ask for relief in some cases.
Does the 60 day rule count for my return?
Yes. A contribution made in the first 60 days after year end can be claimed for the earlier year, and for 2025 the last day was March 2, 2026. For the 2026 tax year it should fall on March 1, 2027, but we worked that out from the 60 day rule and did not read it on a CRA page.
All rrsp and retirement calculators
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