# Retiring: what changes for your taxes

> What changes for your taxes when you are retiring in Canada: CPP and OAS, RRSP withdrawals, the move to a RRIF and instalments

The cheque stops coming from one place and starts coming from several, and almost none of them take tax off the way your employer did. That's the part that surprises people.

## What gets taxed?

CPP, OAS, employer pensions and RRSP or RRIF withdrawals all count as income, and so does interest outside a TFSA. A TFSA withdrawal doesn't, which is why people often use it to top up their income without raising their tax. Check yours with the [RRSP withdrawal tax calculator](https://tax-services.ca/calculators/rrsp-retirement/rrsp-withdrawal-tax) and the [TFSA calculator](https://tax-services.ca/calculators/rrsp-retirement/tfsa-calculator).

## When do you start CPP and OAS?

You choose, and the timing changes the amount you get for the rest of your life. The government's [CPP retirement pension page](https://www.canada.ca/en/services/benefits/publicpensions/cpp.html) points to the timing question and the advantages of waiting. Try the [CPP calculator](https://tax-services.ca/calculators/rrsp-retirement/cpp-calculator) and the [OAS calculator](https://tax-services.ca/calculators/rrsp-retirement/oas-calculator) before you decide, then look at the [CPP page](https://tax-services.ca/cpp) for the current maximums.

## What about the RRSP?

It has to be closed or turned into a RRIF by the end of the year you turn 71. Plan the withdrawals, because a big lump in one year can push you into a higher bracket. The [RRSP page](https://tax-services.ca/rrsp) explains the basics, and the [savings and retirement guide](https://tax-services.ca/guides/savings-and-retirement) goes wider.

## Why does the first year trip people up?

Picture Sam in Winnipeg, who retires in June and starts drawing a pension, CPP and a few RRSP withdrawals. Each payer treats the money on its own, so no one looks at the total. Come tax time, the sum can land in a higher bracket than the slips suggested. Set aside a share of every payment as you go, and use the [retirement income tax calculator](https://tax-services.ca/calculators/rrsp-retirement/retirement-income-tax) for a ballpark of the full year.

## Before you act on this page

You're reading a general overview, and it can't see your slips, your province or your family, so you shouldn't treat it as advice for your own return. If anything here doesn't match a letter from the CRA, the letter wins.

Stuck?

Ask a qualified preparer or the CRA itself, and keep the [document checklist](https://tax-services.ca/checklists/documents-for-your-tax-return), the [tax calendar](https://tax-services.ca/tax-calendar) and the [filing guide](https://tax-services.ca/guides/file-your-taxes) close by. Not sure which province's rules apply to you? The [province index](https://tax-services.ca/provinces) lists them all.

---
Source: https://tax-services.ca/life-events/retiring
Last updated: 2026-10-05
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer