Put $10,000 into an RRSP and claim it, and a person earning $90,000 in Ontario pays $2,965 less income tax for 2026. So the deposit really costs $7,035. Type in your income, the amount you plan to claim and your room, and the calculator shows the saving where you live.
What is an RRSP deduction actually worth?
The deduction comes off your taxable income, so each dollar saves tax at your top rate. Earn more and the same deposit gets you more back. But it’s a deferral, not a gift: money you take out later counts as income again.
| Item | 2026 value |
|---|---|
| Dollar limit | $33,810 |
| Share of last year’s earned income | 18% |
| Dollar limit, 2025 | $32,490 |
| Over-contribution buffer | $2,000 |
| Penalty above the buffer | 1% a month |
| Deadline for a tax year | First 60 days of the next year |
| Last year to contribute | The year you turn 71 |
How different are the savings at $90,000 and $60,000?
Start with a worker in Ontario who has $90,000 of taxable income and earned $90,000 last year. A $10,000 claim takes income tax from $17,034 down to $14,069. That’s $2,965 saved, or 29.6% of the deposit. Room for the year is $16,200 (18% of $90,000), so the deposit fits.
Now put $60,000 in both income fields. Tax drops from $8,320 to $6,129, a saving of $2,192 or 21.9%. Room is $10,800, and $10,000 still fits. Same deposit, about $770 less back, which is why a deposit made in a high-income year tends to pay off more than the identical amount put in during a lean one.
Where does my room come from?
Take the lesser of 18% of last year’s earned income or the dollar limit. Subtract your pension adjustment, then add any unused room carried forward. If you belong to a workplace pension, expect a smaller figure, since the pension adjustment cuts room dollar for dollar. Your notice of assessment prints the official number. Copy it into the last two fields of the calculator and skip the guesswork.
Simple as that.
What goes wrong with RRSP deposits?
Go over your room by more than $2,000 and the excess costs 1% a month. Inside the buffer there’s no penalty, but the extra earns no deduction until you have room for it. And a big refund isn’t free money if you pull the funds out in a low-income year and forget the tax bill.
The calculator taxes income at your province’s rates and compares two totals. It leaves out other credits, spousal contributions and a claim spread over several years. To see what the saving does to your refund, try the tax refund calculator. The marginal tax rate calculator shows your rate on the next dollar.
RRSP, TFSA or FHSA?
An RRSP is one of three accounts worth comparing. Growth with no deduction going in sits in the TFSA calculator, and a first home buyer can run the FHSA calculator. When it’s time to spend the money, the RRSP withdrawal tax calculator shows what comes out.
Where the numbers come from
Limits and rules come from the federal registered plan tables for 2026. Tax rates are the federal and provincial 2026 tables built into the site. Results are estimates, and we have no connection with any government body.
Frequently asked questions
What is the RRSP limit for 2026?
The dollar limit is $33,810. Your own room is the lesser of that or 18% of last year's earned income, minus any pension adjustment, plus unused room.
How much tax will a $10,000 deposit save me?
That depends on your top rate. At $90,000 of income in Ontario it saves $2,965, and at $60,000 it saves $2,192.
Can I put in more than my room?
Up to $2,000 over is allowed with no penalty. Past that, the excess is charged 1% a month until you fix it.
When do I get the refund?
Not at the moment you deposit. It arrives as a smaller tax bill or a bigger refund once you file and claim the deduction.
Is the tax saving permanent?
Usually not. Withdrawals are taxed as income, so it's a deferral, unless your rate is lower when you take the money out.
Sources and updates
Updated: . How we check rates · Editorial team · Updates
Estimate only. These figures are a planning estimate, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns, and we don't offer tax, legal or accounting services. We have no connection with the Canada Revenue Agency, Revenu Québec or any provincial government. Your real amounts depend on details this tool cannot see, so confirm them with an official source or a qualified professional before you act.