Tax Guide/Saving and investing
The RRSP explained
Updated November 4, 2026
A Registered Retirement Savings Plan (RRSP) defers tax. You deduct contributions now, investments grow without yearly tax, and withdrawals are taxed later.
It works best when your tax rate is higher now than when you withdraw.
| 2026 details | |
|---|---|
| Room | 18% of 2025 earned income, up to $33,810 |
| Contribution deadline | March 1, 2027 |
| Unused room | Carries forward |
| Plan must end | By December 31 of the year you turn 71, usually by converting to a RRIF or buying an annuity |
Contributing to a spousal RRSP can shift future income to a lower-income partner. A withdrawal within about three years of a contribution can be taxed to the contributor.