This is above the 2026 RRSP dollar limit of $33,810. You can only deduct up to your own deduction limit (see your latest notice of assessment) and carry the rest forward.
How the savings are estimated
The calculator works out your 2026 income tax twice, with and without the RRSP deduction, and shows the difference. Both federal and provincial or territorial tax are included, including Ontario’s surtax and Health Premium.
Because tax rises in steps, the saving is largest when the deduction lowers income that would be taxed at a higher bracket. A contribution that moves you across a bracket boundary saves tax at two different rates.
Your own deduction limit is 18% of last year’s earned income up to a yearly dollar limit ($33,810 for 2026), plus unused room from past years, minus any pension adjustment. The new room your 2026 income earns is available for 2027.
RRSP rules to keep in mind
- The dollar limit is $33,810 for 2026 (it was $32,490 for 2025 and is $35,390 for 2027).
- You have 60 days after the end of the year to contribute and still deduct it for that year. For 2026 that deadline is March 1, 2027.
- You can over-contribute by up to $2,000 without penalty; beyond that the tax is 1% per month on the excess.
- Withdrawals are taxed as income, so the saving is a deferral unless your rate in retirement is lower.
- Check your deduction limit in CRA My Account or on your latest notice of assessment.
What this leaves out
- Your actual deduction limit and unused room.
- Benefits that depend on net income (such as the Canada Child Benefit), which a deduction can raise.
- Other income, credits and deductions on your return.
- Spousal RRSP attribution and withdrawals under the Home Buyers’ Plan or Lifelong Learning Plan.
- A comparison with the TFSA, which gives no deduction.
Frequently asked questions
How much does an RRSP contribution save?
It saves your marginal tax rate on the amount deducted, which depends on your income and province. The calculator shows the saving for the amount you enter and the saving on the next $100.
What is the 2026 RRSP limit?
The maximum new room is 18% of 2025 earned income up to $33,810 for 2026, according to the CRA. Your own limit also includes unused room and pension adjustments.
When is the deadline for 2026?
Contributions in the first 60 days of 2027 can be deducted for 2026. That deadline is March 1, 2027.
Do I get the refund immediately?
You claim the deduction when you file your return, so the saving shows up as a bigger refund or smaller balance owing. You can ask your employer to lower payroll withholding with a CRA form if you contribute regularly.
Is the room for next year based on this year’s income?
Yes. Income earned in 2026 creates room for the 2027 tax year, up to the 2027 dollar limit of $35,390. The page shows it using the 2026 limit as a guide.
Last updated
Related tools
Sources
- CRA: How contributions affect your RRSP deduction limit
- CRA: MP, RRSP, DPSP, TFSA limits and the YMPE
- CRA: Tax rates and income thresholds (current year)
- CRA: T4032 payroll deductions tables
- CRA: 2026 TD1 personal tax credits returns
The March 1, 2027 date is the end of the 60-day period the CRA describes, counted from January 1, 2027.
How we check
The refund is the difference between two runs of the income tax engine, which is compared with the CRA’s 2026 T4032 constants. The test suite also checks a hand calculation in one bracket (Alberta, $80,000, $1,000 deduction: 20.5% federal + 10% provincial = $305.00) and the 18% / $33,810 room rule from the CRA’s 2026 limits page.
Limits: we have not compared results with the CRA’s or a tax software package. Quebec’s provincial parameters are from published summaries rather than an official page we could fetch.