RRSP Calculator Canada
This is not a CRA account lookup or a complete deduction-limit calculator.
Important note
Buying a first home? The Home Buyers’ Plan (HBP) works alongside the room math above: you can withdraw up to $60,000 from your RRSP tax-free to buy or build a qualifying home ($120,000 for a couple combining their plans), provided the money has been in the RRSP at least 90 days. You repay it in equal instalments over 15 years, starting the second year after the withdrawal year; any instalment you miss is added to your taxable income for that year instead. The withdrawal itself does not consume RRSP room — but the years spent repaying are years that room is not sheltering new contributions.
How this calculator works
This calculator models the first, simplest step of the RRSP room formula: new room equals 18% of earned income (employment and self-employment income count; investment income does not). Enter your earned income and planned contribution, and it shows two numbers: the deduction, min(contribution, income x 0.18), and the leftover room, max(income x 0.18 - contribution, 0) — never below zero.
Two real-world adjustments are left out, which is why every result is labeled illustrative. First, CRA caps new annual room at $33,810 for 2026 — the 18% rule stops applying once earned income passes about $187,833 (33,810 / 0.18). Second, a pension adjustment from an employer pension plan reduces new room dollar for dollar, while unused room from previous years carries forward and adds to your limit. Your true limit is on your notice of assessment; this tool is a sanity check before you look it up.
Worked example: $100,000 income, $12,000 contribution (2026)
Take an Ontario worker with $100,000 of earned income planning a $12,000 RRSP contribution for 2026. Step one: illustrative new room = 18% x $100,000 = $18,000. Step two: deduction = min($12,000, $18,000) = $12,000 — the full contribution is deductible because it fits inside the room. Step three: remaining illustrative room = $18,000 - $12,000 = $6,000, which carries forward.
What is that $12,000 deduction worth? At $100,000 in Ontario, each marginal dollar is taxed at 20.5% federally and 9.15% provincially under 2026 brackets — a combined 29.65%. The deduction therefore saves roughly $12,000 x 29.65% = $3,558 in tax. Actual savings come from your full tax return; the marginal rate gives the ballpark.
Practical tips
- Contribute early in the calendar year rather than in the deadline rush — January money gets roughly 14 extra months of tax-sheltered growth versus a last-minute March contribution.
- Check your real room on your notice of assessment before a large contribution, especially with an employer pension plan — the pension adjustment can make actual room far smaller than 18% of income.
- Expecting higher income next year? Contribute now and defer claiming the deduction to that year, when it is worth more — contribution and deduction do not have to happen in the same tax year.
Frequently asked questions
How is my RRSP deduction limit actually calculated?
Your limit is the smaller of 18% of the previous year's earned income and the annual maximum — $33,810 for 2026 — minus any pension adjustment from an employer plan, plus unused room carried forward from earlier years. This calculator shows only the raw 18% step; confirm the full figure on your notice of assessment or CRA My Account.
What happens if I over-contribute to my RRSP?
CRA allows a $2,000 lifetime buffer. Beyond your limit plus that buffer, you pay a 1%-per-month penalty tax on the excess until you withdraw it or new room absorbs it. If your contributions here exceed the 18% figure and the calculator shows $0 remaining, verify your real limit before adding more.
What is the RRSP contribution deadline for the 2026 tax year?
Contributions made in the first 60 days of 2027 — the deadline is March 1, 2027 — can be deducted against 2026 income. Contributions made later in 2027 count toward the 2027 tax year instead.
Does this calculator apply the 2026 $33,810 annual cap?
No — it uses the flat 18% rule for illustration. If your earned income was above about $187,833, your real new room is capped at $33,810, which is less than 18% of your income. High earners should use their notice of assessment figure.
Is 18% the complete RRSP rule?
No. The actual RRSP deduction limit depends on prior-year earned income, pension adjustments, carry-forward room and the annual CRA maximum.
Where should I verify my room?
Use your CRA records and notice of assessment.