RRSP Tax Savings Calculator (Canada)
See how much tax refund an RRSP contribution gives you, what it really costs after the refund, and how it can grow.
How the RRSP refund works
RRSP contributions are deducted from your taxable income, so the refund is your contribution times your marginal tax rate (the rate on your last dollar of income, federal plus provincial). The real cost of the contribution is the contribution minus the refund.
Your RRSP then grows tax deferred, and withdrawals are added to your income and taxed. The gap between your rate today and your rate in retirement is where the benefit comes from. Use the TFSA vs RRSP calculator to compare with a tax-free account.
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Look up your marginal rate for your province and income.
- Invest the refund so it keeps working for you.
- Contribute before the deadline, which is early March of the next year.
Learn more
Frequently asked questions
What is a marginal rate?
The tax rate on the next dollar you earn, not your average rate.
Is the refund guaranteed?
It reduces your tax payable up to the amount of tax you owe, so very low incomes see less.
What is the RRSP limit?
It is a percentage of your earned income up to a yearly cap. Check CRA My Account.
Are withdrawals taxed?
Yes. They count as income in the year you withdraw.
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