After Tax Canada / RRSP tax savingsVersion française
RRSP tax savings calculator (2026)
Every RRSP dollar cuts your taxable income by a dollar, so the tax you save is roughly your marginal tax rate times the contribution. Enter your salary, contribution, and available RRSP room to see the exact savings, federal and provincial, for every province.
Enter the room on your CRA notice of assessment. New room each year is the lesser of 18% of last year's earned income and the $33,810 annual limit for 2026, minus any pension adjustment, plus unused room carried forward. Leave it blank to assume the contribution is within your room.
Ontario · 2026
$2,991$2,991 back on a $10,000 contribution
Effective refund rate: 29.9%
Where the savings come from
| Federal tax saved | $2,050 |
| Provincial tax saved | $941 |
| Total tax saved | $2,991 |
| What the contribution really costs you | $7,009 |
An RRSP contribution reduces your taxable income dollar-for-dollar, up to your available room. The number above is the income tax you do not pay this year: tax on your salary, minus tax on your salary minus the deductible part of the contribution. CPP/QPP and EI are not reduced by RRSP contributions.
The contribution leaves your paycheque, then the tax savings come back as a refund (or smaller balance owing) when you file, so the out-of-pocket cost is the contribution minus the savings.
How the refund works
Most people see the savings as a tax refund when they file. If your employer reduces tax withheld from your paycheques after you file a T1213, you feel it across the year instead. The math is identical either way.
Make your take-home work harder
Your paycheque is only half the story. These are the account types Canadians use to put after-tax money to work. What follows is factual information, not financial advice.
High-interest savings account
A savings account that pays a higher rate than a chequing account. Money stays liquid and earns interest while you keep it.
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Investment account
An account for buying investments such as ETFs and stocks. It can be registered (TFSA, RRSP, FHSA) or non-registered.
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Bank account
A chequing account for daily spending and bill payments, often bundled with savings and credit products.
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Disclosure: if partner offers are listed here in the future, they will be clearly labelled, and we may earn a commission. Account descriptions are factual information, not financial advice.
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Worked examples: 2026
| Salary | RRSP contribution | Tax saved | After-tax cost |
|---|---|---|---|
| $75,000 · ON | $5,000 | $1,571 | $3,429 |
| $100,000 · ON | $10,000 | $2,991 | $7,009 |
| $100,000 · QC | $10,000 | $3,607 | $6,393 |
| $150,000 · BC | $25,000 | $9,776 | $15,224 |
2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
How much tax do I save with a $10,000 RRSP contribution?
In 2026, on a $100,000 Ontario salary, a $10,000 RRSP contribution saves $2,991 in income tax ($2,050 federal + $941 provincial), an effective refund rate of 29.9%. That means the $10,000 contribution really costs you $7,009 out of pocket.
How does the RRSP tax deduction work?
An RRSP contribution reduces your taxable income dollar-for-dollar. The tax you save equals your income tax on your salary minus your income tax on (salary minus the contribution), in practice, roughly your marginal tax rate times the contribution. The calculator above runs that exact math with the 2026 federal and provincial brackets.
Do RRSP contributions reduce CPP or EI?
No. RRSP contributions reduce income tax only: CPP/QPP and EI premiums are calculated on your employment earnings and do not change. That is why the savings above come entirely from the federal and provincial tax lines.
How are RRSP tax savings different in Quebec?
Quebec's higher provincial brackets mean bigger savings: on a $100,000 salary, a $10,000 RRSP contribution saves 3 607 $ in Quebec (1 707 $ federal + 1 900 $ provincial) versus $2,991 in Ontario, an effective refund rate of 36.1% instead of 29.9%.
RRSP vs TFSA: which saves more tax?
They save tax differently, so neither is universally better. An RRSP gives you a tax deduction now and the withdrawals are taxed later; a TFSA gives no deduction up front, but qualified withdrawals are tax-free. This calculator shows the RRSP side of that comparison: the immediate tax value of the deduction.
When do I actually get the RRSP tax savings?
Most people receive it as a tax refund when they file: on a $75,000 Ontario salary, a $5,000 contribution saves $1,571, which typically lands as a refund. If you file a T1213 with the CRA, your employer can reduce the tax withheld from each paycheque instead, so you feel the same savings across the year.
How much RRSP room do I have?
Your RRSP deduction limit is your unused room from previous years, plus the lesser of 18% of last year's earned income and the $33,810 annual limit for 2026, minus any pension adjustment. Your exact number is on your CRA notice of assessment or in CRA My Account. The calculator above lets you enter your available room: only the part within your room saves tax this year, the excess can be deducted in a later year when you have room, and the CRA charges 1% per month only on contributions above your room plus the $2,000 buffer.