Here’s what you need to know about RRSP contributions, RRSP deductions, and RRSP deadlines for 2025
2025 RRSP (Registered Retirement Savings Plan) Canada
RRSP Contribution Deadline for 2025 Tax Year: March 01, 2026!
The deadline to make contributions to your RRSP for the 2025 tax year is March 1, 2026. This means you have until this date to contribute and reduce your taxable income for the 2025 tax year.
RRSP Contribution Limits for 2025
The maximum RRSP contribution limit for 2025 is $33,820. This figure includes contributions to your own RRSP or a spousal/common-law partner’s RRSP. If you have unused contribution room from previous years, you can carry it forward, making your available contribution room for 2025 potentially greater than $33,820.
RRSP Contribution Limits in Recent and Upcoming Years:
- 2023 RRSP contribution limit: $30,780
- 2024 RRSP contribution limit: $32,270
- 2025 RRSP contribution limit: $33,820
- 2026 RRSP contribution limit: $35,420
Understanding RRSP Contribution Room
Your contribution room is determined based on several factors, including your earned income, pension adjustments, and any unused contribution room from previous years. The Canada Revenue Agency (CRA) will send you a Notice of Assessment after processing your tax return, which will indicate your RRSP contribution limit for the year. You can also check your contribution room online by signing into My Account on the CRA website.
It’s important to keep track of your RRSP contribution room each year to avoid exceeding the limits and incurring penalties.
RRSP Over-Contributions
If you contribute more than your allowable RRSP limit, a penalty will be applied. The Canada Revenue Agency imposes a penalty of 1% per month on the excess contributions above the lifetime over-contribution limit of $2,000.
Example of Over-Contribution Penalty:
If you contribute $5,000 over the limit, you would be charged a 1% penalty on the excess $3,000 each month until you correct the over-contribution. Therefore, it’s crucial to ensure that your RRSP contributions don’t exceed your available room.
RRSP Deduction Limit and Tax Returns
The amount you can deduct on your tax return for RRSP contributions is determined by your RRSP deduction limit. The limit is calculated based on factors such as earned income, pension adjustments, and any unused room carried forward from prior years. The CRA will include this information on your Notice of Assessment or you can find it online in My Account.
Deduction Limits for Recent and Upcoming Years:
- 2023 maximum RRSP deduction limit: $30,780
- 2024 maximum RRSP deduction limit: $32,270
- 2025 maximum RRSP deduction limit: $33,820
- 2026 maximum RRSP deduction limit: $35,420
You can deduct contributions made to your RRSP between January 1, 1991, and March 1, 2026, on your 2025 income tax return, provided those contributions have not been deducted in previous years. Repayments under the Home Buyers’ Plan (HBP) or the Lifelong Learning Plan (LLP) are not deductible, but they must be reported on Schedule 7, which you submit with your tax return.
RRSP Withdrawal Tax Withholding
When you withdraw funds from an RRSP, the CRA applies withholding tax at the time of withdrawal. The amount of withholding tax depends on the size of the withdrawal and your province of residence. Below are the tax rates for RRSP withdrawals:
| RRSP Withdrawals |
All Provinces Except Quebec |
Quebec |
| Up to $5,000 | 10% | 21% |
| Over $5,000 to $15,000 | 20% | 26% |
| Over $15,000 | 30% | 31% |
RRSP Terminology
Here are some key terms related to RRSPs to help you better understand how they work:
- RRSP contribution: The amount you pay into an RRSP, whether in cash or kind, at the time of contribution.
- RRSP deduction: The amount you claim on line 208 of your tax return to reduce your taxable income for the year.
- RRSP deduction limit: The maximum amount you can deduct from contributions made to your RRSP or your spouse’s/common-law partner’s RRSP. This limit is determined by a combination of your earned income, pension adjustments, and unused contribution room from previous years.
The above information is provided by the Canada Revenue Agency.