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 |
Both dollar limits are on the CRA’s table of RRSP, TFSA and pension limits.
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.
Picture Maya in London, Ontario, on that $90,000. Her refund of $2,965 lands in the spring. Plenty of people spend it, but she sends it straight back into the RRSP, and that second deposit earns its own deduction the following year.
Timing helps, too. A deposit made in the first 60 days of 2027 can still be claimed on the 2026 return, so if Maya’s bonus arrives in January she can wait for it and still count the money for 2026. Many people run the numbers at tax time, once the year’s income is known, and top up then.
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.
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. The buffer is for adults only, so a teenager with a small RRSP gets no cushion. The CRA’s page on going over your RRSP deduction limit spells out how the extra tax is charged. 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.
Our sources
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.
About this calculator
- What it does
- Estimate the tax an RRSP contribution saves you and check it against your RRSP room.
- Category
- RRSP and Retirement
- Last checked
- September 30, 2026
- Result type
- Estimate for information only, not tax advice.
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