Tax Guide/Deductions
RRSP deduction
Updated November 4, 2026
An RRSP contribution lowers your income for tax purposes. At a 43% combined rate, $10,000 saves about $4,300 in tax.
| 2026 return | |
|---|---|
| New room | 18% of 2025 earned income, up to $33,810 |
| Deadline | March 1, 2027 |
Your exact limit, including unused room, is on your latest Notice of Assessment and in CRA My Account. Pension plan members usually have less room because of a pension adjustment.
You can contribute now and delay the deduction to a higher-income year.
Over-contributions of more than $2,000 are generally taxed at 1% a month until fixed.