RRSP contribution room and tax refund
Your RRSP room each year is 18% of last year's earned income, up to a dollar cap, minus any pension adjustment from a workplace plan, plus room you didn't use before. A contribution lowers your taxable income, which is where the refund comes from.
Assumptions
- 2026 RRSP dollar limit: $33,810. Room = lesser of 18% of 2025 earned income or $33,810, less 2025 pension adjustment, plus unused room. Your Notice of Assessment shows the official number.
- Refund uses 2026 federal and Ontario brackets only; ignores credits, Ontario surtax and health premium, so treat it as approximate.
- Over-contributions above $2,000 are taxed at 1% per month.
General information, not financial advice. This calculator gives rough estimates from simplified assumptions. It does not know your full situation. Check with a qualified professional and the official sources before making decisions.
Sources
- Canada.ca: RRSP and TFSA dollar limits by year
- Canada.ca: How contributions affect your RRSP deduction limit
- Canada.ca: Pension adjustment (line 20600)
- Canada.ca: T4032-ON payroll tables, 2026 federal and Ontario brackets
Figures checked October 16, 2026. Rules and limits change; confirm with the source before acting.