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RRSP withdrawal tax calculator (2026)
Taking money out of your RRSP? The full withdrawal counts as income in Canada, taxed on top of your other income, and your institution withholds tax before you see a cent. Enter the withdrawal and your other income to see the final tax, what is withheld now, and what you keep in every province.
Ontario · 2026
$14,193$14,193 kept from a $20,000 RRSP withdrawal
You keep 71.0% · 29.0% effective tax rate
Tax on the RRSP withdrawal
| Federal tax | $3,904 |
| Provincial tax | $1,903 |
| Total income tax on the RRSP withdrawal | $5,807 |
| You keep | $14,193 |
The withdrawal is added to your other taxable income and taxed at the marginal rates that apply above it. It does not attract CPP/QPP, EI or QPIP contributions, so this calculator shows income tax only, unlike the main salary calculator. The basic credits are counted once, against your combined income.
Tax withheld now
| Withholding rate | 30% |
| Tax withheld | $6,000 |
| Cash you receive now | $14,000 |
Refund when you file: $193
Withholding is a prepayment, not your final tax. The amount withheld is credited on your tax return, so the difference is what you still owe or get back.
How an RRSP withdrawal is taxed
The calculator compares your income tax with and without the withdrawal, using the 2026 brackets and credits. These are annual figures. Your financial institution withholds tax when you withdraw: 10% on withdrawals up to $5,000, 20% from $5,001 to $15,000, and 30% over $15,000 outside Quebec, and 19%, 24% and 29% combined in Quebec. The rate applies to the whole withdrawal. Withholding is a prepayment, credited when you file, and it is often not your final tax. It does not model the pension income amount or the age amount, so some people may owe less than shown. The calculation also reflects payroll-linked credits computed at your combined income, so if none of your income is employment income, your tax could be higher than shown. Withdrawals under the Home Buyers' Plan and the Lifelong Learning Plan, and RRIF minimum amounts, follow separate rules and are not modelled here.
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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Worked examples, RRSP withdrawals in 2026
| Withdrawal and other income | Tax on the withdrawal | Withheld now | You keep |
|---|---|---|---|
| $20,000 withdrawal · $60,000 other · ON | $5,807 | $6,000 | $14,193 |
| $20,000 withdrawal · $60,000 other · QC | $6,854 | $5,800 | $13,146 |
| $10,000 withdrawal · $40,000 other · BC | $1,811 | $2,000 | $8,189 |
| $50,000 withdrawal · $75,000 other · AB | $15,504 | $15,000 | $34,496 |
Tax on the withdrawal · 2026 tax tables · verified 2026-09-20 · how we calculate
FAQ
How much tax do I pay on a $20,000 RRSP withdrawal in Ontario?
With $60,000 of other income, a $20,000 RRSP withdrawal in Ontario in 2026 means $5,807 of income tax, so you keep $14,193 of the withdrawal. Your institution withholds $6,000 (30%), so you receive $14,000 now, and $193 comes back when you file because the withholding was more than the final tax.
How is an RRSP withdrawal taxed in Canada?
The full withdrawal counts as taxable income in the year you take it out, reported on a T4RSP slip, and it is taxed at your marginal rates on top of your other income. That is why the tax depends on your other income, not just the size of the withdrawal. The withdrawal also permanently uses up RRSP contribution room: unlike a contribution, you do not get the room back when you withdraw.
How much tax is withheld when I withdraw from my RRSP?
Outside Quebec, your financial institution withholds 10% on withdrawals up to $5,000, 20% from $5,001 to $15,000, and 30% over $15,000. In Quebec the combined federal and provincial withholding is 19%, 24% and 29% at the same thresholds. The rate applies to the whole withdrawal, not just the portion above each threshold. Withholding is a prepayment, not your final tax: it is credited on your return, and you owe the difference or get a refund depending on your total income.
Is RRSP withdrawal tax higher in Quebec than in Ontario?
Yes, on the same withdrawal. A $20,000 RRSP withdrawal with $60,000 of other income costs $6,854 in tax in Quebec in 2026, against $5,807 in Ontario, a difference of $1,047. Quebec's provincial income tax rates are higher at these incomes, so the same withdrawal costs more there. Quebec withholding is $5,800 at 29%, against $6,000 at 30% in Ontario.
How much tax on a $10,000 RRSP withdrawal in British Columbia?
With $40,000 of other income, a $10,000 RRSP withdrawal in British Columbia in 2026 means $1,811 of income tax, so you keep $8,189. Your institution withholds $2,000 (20%), so you receive $8,000 now, and $189 comes back when you file.
Can I withdraw from my RRSP tax-free under the Home Buyers' Plan or Lifelong Learning Plan?
Yes, if you follow the rules. Under the Home Buyers' Plan you can withdraw up to $60,000 in total to buy or build a qualifying home, with no tax withheld, as long as you repay it on schedule. Under the Lifelong Learning Plan you can withdraw up to $10,000 a year, $20,000 in total, for full-time education or training, also with no tax withheld if you repay it. Amounts you do not repay on schedule are added back to your income and taxed. This calculator models ordinary taxable withdrawals only, not these two plans.
What about RRIF withdrawals? Is tax withheld from the minimum amount?
No tax is withheld from a RRIF minimum amount: withholding applies only to amounts above the minimum, at the same tiers as RRSP withdrawals. Every RRIF payment is still taxable income, whether or not tax was withheld from it, so the minimum amount is taxed when you file even though nothing was withheld at the time. This calculator models a lump-sum RRSP withdrawal; for a RRIF, enter only the amount above the minimum if you want the withholding figure to match.