Personal tax and savings
RRSP contribution room and tax saving
What a year of income earns you in room, and what a contribution saves.
A starting point, not tax advice. Nothing you type leaves your browser.
What this does not cover. An estimate. Your real deduction limit comes from the CRA and reflects pension adjustments and past contributions. Over-contributing is penalised, so check your notice of assessment first.
How this works
What the number means
A year of earned income creates RRSP room worth 18% of it, capped at the annual dollar limit — $33,810 for 2026. Unused room carries forward, which is why many people have far more room than one year would suggest.
A contribution is a deduction from income, so what it saves you is the contribution multiplied by your marginal rate. The higher your income, the more each dollar contributed is worth back.
Your actual room is on your notice of assessment and accounts for pension adjustments. Use that figure rather than this one before contributing.
Worked example. $80,000 of earned income creates $14,400 of new room. A $10,000 contribution against a 29.65% combined marginal rate saves roughly $2,965 of tax.
Sources
- CRA — How contributions affect your RRSP deduction limit — modified 29 January 2026
- CRA — MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE — modified 1 December 2025
- CRA — Current year tax rates and income brackets (2026) — modified 25 June 2026
- CRA — T4032-ON Payroll Deductions Tables, Ontario — modified 17 December 2025
Rates change. The CRA page is the authority, and these are reviewed every January.
Questions
What do I need to bring to the first conversation?
Nothing prepared. It helps to know roughly what your revenue looks like, whether you are incorporated, and whether you have employees. Documents can follow once you know what you need.
Next step
Want someone to check the real figure?
A calculator estimates. A consultation answers for your actual situation. The first one is free.