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Registered Retirement Savings Plan ยท 2026

RRSP Tax Savings Calculator

See how much tax a contribution to your RRSP saves in your province, what it costs you after the refund and how the saving grows with the amount.

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Your deduction limit depends on your RRSP room (18% of last year's earned income, up to a yearly maximum). Check your CRA My Account for your room.

Tax you save this year

$2,965

on a $10,000 RRSP contribution, a 30% return from the tax refund alone.

Net cost to you
$7,035
Tax before
$17,034
Tax after
$14,069
Marginal rate
30%

A $10,000 contribution costs you only $7,035 after the refund

The full $10,000 is invested; the tax saving of $2,965 comes back as a lower tax bill. Withdrawals are taxed later, usually at a lower rate in retirement.

Tax saved by contribution size

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How the saving works

An RRSP contribution is deducted from your income, so you pay tax on less. The saving is your marginal rate (federal plus provincial) applied to the amount you contribute.

Why the saving differs by income

Higher earners save more per dollar because their marginal rate is higher. The chart shows the tax saved at every contribution size.

Deadlines and room

You can contribute until 60 days after the end of the year and still claim the deduction for that year. Your limit is 18% of last year's earned income up to a yearly maximum, shown on your CRA notice of assessment.

Frequently asked questions

Figures use 2026 Canadian rates. See the methodology.

How much tax does a $10,000 RRSP contribution save? +

It depends on your income and province; the calculator shows the exact figure. At typical middle incomes the saving is around $2,500 to $3,500.

Do I pay tax when I withdraw? +

Yes. RRSP withdrawals are taxed as income in the year you take them out, ideally at a lower rate than when you contributed.

Does an RRSP reduce CPP or EI? +

No. CPP and EI are based on employment earnings, not on income after RRSP deductions.

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