RRSP tax savings calculator 2026
An RRSP deduction saves tax at your marginal rate. On $85,000 of taxable income in 2026, a $10,000 contribution saves about $2,820 in BC and $3,050 in Alberta. The 2026 dollar limit is $33,810, and contributions made by Monday, March 1, 2027 (the 60th day of 2027 under the Income Tax Act) count for 2026.
2026 brackets, checked 21 Oct 2026Runs in your browserSummary free, no sign-up
Your 2026 estimate
$2,820
Your $10,000 contribution saves about $2,820, or 28.2 cents for every dollar you put in.
Federal and provincial income tax only, with basic personal amounts claimed. Contributions by Monday, 1 March 2027 (the 60th day of 2027 under the Income Tax Act) count for 2026; CRA's important-dates page (29 Jan 2026) still shows the 2025-year date.
See the federal and provincial splitTax with and without your RRSP, your marginal rate, the limit, the deadline and next steps Book a free 15-minute callEstimate only, general information, not tax advice. Your situation may differ; book a free 15-minute call before acting. It works out income tax on your taxable income with only the basic personal amounts and the BC tax reduction, and leaves out other credits, CPP and EI, benefits that depend on income, and the tax you pay when you withdraw.
Your RRSP deduction, federal and provincial
Your 2026 income tax with and without the contribution, split into federal and provincial tax with the reason for each line, your marginal rate before and after, and what to check before you contribute. It follows every change you make above.
| Line | Without the RRSP | With the RRSP | Difference |
|---|
What this means
Before you contribute
What to do next
A $10,000 RRSP contribution on $85,000
Someone with $85,000 of taxable income contributes $10,000 to an RRSP and deducts it on their 2026 return. Taxable income drops to $75,000. Every dollar of that $10,000 came off the 20.5% federal bracket (over $58,523), and the 7.7% BC bracket (over $50,363) or the 10% Alberta bracket (over $61,200).
| $85,000, $10,000 RRSP, 2026 | BC | Alberta |
|---|---|---|
| Income tax without the RRSP | $16,065 | $16,772 |
| Income tax with the RRSP | $13,245 | $13,722 |
| Tax saved | $2,820 | $3,050 |
| Effective refund rate | 28.2% | 30.5% |
This example uses $85,000 of taxable income with only the basic personal amounts; the income tax calculator's $85,000 example is employment income, with CPP and EI deducted and credited, so the two tax figures differ.
If the same person deducted $30,000, taxable income would fall to $55,000. The last $3,523 would only save tax at the 14% federal rate (and in Alberta the last $6,200 at 8%), so the refund rate on the whole amount would be a little lower. That is why spreading a large deduction over two years can save more. Check your own numbers with the income tax calculator.
How this is calculated
- Tax without the RRSP. Federal and provincial tax on your taxable income by bracket, less the basic personal amounts (14% federal, 5.6% BC, 8% Alberta) and the BC tax reduction.
- Tax with the RRSP. The same, on taxable income less your contribution (never below zero).
- Tax saved is the difference. The effective refund rate is tax saved divided by the contribution.
- Limit and deadline. The 2026 dollar limit is $33,810. Contributions made from January 1, 2026 to Monday, March 1, 2027 (the 60th day of 2027 under the Income Tax Act) can be deducted for 2026; CRA's important-dates page still shows the 2025-year date, and we re-check it when the 2026 page appears.
| 2026 RRSP dollar limit | $33,810 |
| 2027 RRSP dollar limit | $35,390 |
| New room | 18% of last year’s earned income, up to the limit |
| Deadline for 2026 contributions | Monday, March 1, 2027 |
| Amount | Credit rate | |
|---|---|---|
| Federal basic personal amount | $16,452 falls to $14,829 between $181,440 and $258,482 of net income | 14% |
| Canada employment amount (federal) | $1,501 | 14% |
| BC basic personal amount | $13,216 | 5.6% |
| BC tax reduction | $690 less 3.56% of net income over $25,570 | – |
| Alberta basic personal amount | $22,769 | 8% |
| Taxable income | Rate |
|---|---|
| Up to $50,363 | 5.6% |
| $50,363 to $100,728 | 7.7% |
| $100,728 to $115,648 | 10.5% |
| $115,648 to $140,430 | 12.29% |
| $140,430 to $190,405 | 14.7% |
| $190,405 to $265,545 | 16.8% |
| Over $265,545 | 20.5% |
| Taxable income | Rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
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RRSPs in 2026, answered
How much tax will my RRSP contribution save?
Roughly your marginal tax rate times the amount you deduct. On $85,000 of taxable income in 2026 that is 28.2% in BC and 30.5% in Alberta, so a $10,000 deduction saves about $2,820 or $3,050. A large contribution can pull your income into a lower bracket, so the rate on the last dollars may be lower.
What is the RRSP deadline for the 2026 tax year?
Contributions made by Monday, 1 March 2027 (the 60th day of 2027 under the Income Tax Act, a weekday so it doesn't move) can be deducted on your 2026 return. CRA's important-dates page (29 Jan 2026) still shows the 2025-year date; we re-check it when the 2026 page appears.
What is the RRSP limit for 2026?
The 2026 RRSP dollar limit is $33,810. Your own deduction limit is 18% of your 2025 earned income up to that amount, plus unused room from earlier years, less any pension adjustment. Your exact limit is on your latest notice of assessment and in CRA My Account.
Is the tax saving the same as my refund?
Not always. The deduction lowers the tax you owe for the year. If your employer already withheld tax based on your full salary, the saving usually comes back as a refund. If you owe tax, it reduces the balance instead. Money you take out of an RRSP later is taxed as income in that year.
Do I have to deduct my contribution in the year I make it?
No. You can contribute now and carry the deduction forward to a later year, which can make sense if you expect a higher income and a higher marginal rate later. You still report the contribution on the return for the year you made it.
Is the information I type saved or sent anywhere?
Only if you ask for the full breakdown. The calculator works in your browser, and the summary (tax saved, refund rate, tax before and after) needs nothing from you. If you add your name and email to open the full breakdown, we save them with the numbers you entered and the results, in our database in Canada, so our team can reply; the privacy policy says how long we keep them and how to ask us to delete them. Never type a SIN or account number.