See how an RRSPcontribution could loweryour 2026 income tax.Could your RRSPlower your tax?
Enter your income and RRSP contribution to estimate how much your 2026 Canadian income tax could decrease, and see how an RRSP can support your bigger financial goals.Estimate your 2026 tax reduction in a few steps.
INDRA estimates your 2026 income tax before and after the RRSP deduction you entered.
The difference is shown as your estimated tax reduction.
It is not your refund and it is not a complete tax-return calculation.
Enter your taxable income and RRSP contribution above to see your estimate.
(2026)
Why did it change?
An RRSP deduction reduces the taxable income used in this estimate.
That can reduce federal and provincial or territorial income tax.
The effect depends on your income and the tax brackets the deduction passes through.
Your RRSP contribution reduces your taxable income, which can lower the amount of federal and provincial tax you owe. The exact amount depends on your income level and your province's tax rates.Your RRSP deduction reduced the taxable income used in this estimate.
Could your current RRSP contribution reach your goal?Could your RRSPreach your goal?
Choose a goal and timeframe. See how your current contribution could grow under the assumptions you select.See how this contribution could grow over time.
This is the RRSP balance you want to use as a target for this illustration.
INDRA compares the projected RRSP value with this amount.
It is your selected target — not a recommended retirement amount.
Enter the age you will be on December 31, 2026. This lets INDRA apply the calendar-year age-71 RRSP contribution boundary without guessing your birthday.
The illustration uses full future years. A selected period may end in the year you turn 71, but not after it.
This sets how long your RRSP has to grow in the illustration.
INDRA assumes the contribution entered continues through the selected number of years, but never beyond the age-71 boundary.
The projection does not account for changing contributions or withdrawals.
This is the constant annual investment return used only for this illustration.
Choose 3%, 5% or 7% to see how different return assumptions affect the projection.
It is not a forecast or recommended return.
The projection does not model investment fees or inflation.
Already have RRSP savings?
Illustration only. Assumes the same income, tax rules and RRSP deduction each year. Future RRSP room is not checked.
RRSP basics, one step at a time.RRSP basics
Seven short concepts. Finish one to reveal the next.7 quick lessons.
Know your real room.
Official sources
Your investments can grow inside an RRSP without annual tax
You generally pay tax when you withdraw the money later.You generally pay tax when you withdraw later.
while it stays inside
Official source
Can you use RRSP money before retirement?Can you use your RRSP early?
Yes. Regular RRSP withdrawals are generally taxable. Two special programs have different rules:Regular withdrawals are generally taxable. HBP and LLP have special rules.
Home Buyers’ Plan
Lifelong Learning Plan
Rules to know
Repayment rules apply. Amounts you are required to repay but do not may become taxable income.
Official sources
What happens to your RRSP when you turn 71?
By December 31 of that year, you choose what happens next.
Official source
What changes when an RRSP becomes a RRIF?
Your retirement savings move from saving mode to withdrawal mode.
Good to know
Official source
How much do you have to withdraw from a RRIF?
Each year, a minimum amount generally has to come out of your RRIF.The minimum depends on your age and RRIF value.
The minimum can generally be based on your age or, if elected when the RRIF is set up, your spouse or common-law partner’s age.
The rates shown here use CRA’s “All other RRIFs” rates. Certain older or qualifying RRIFs may use different rates.
Good to know
How this estimate works
INDRA compares an estimated 2026 tax amount before and after the RRSP deduction. It is an educational estimate, not a tax return or CRA assessment.Educational estimate based on the information you entered.
What the calculation includes
- 2026 federal and provincial/territorial progressive income-tax brackets.
- Selected 2026 basic-personal-amount treatment, including official cent-rounding for the phased federal, Manitoba and Yukon amounts.
- Ontario surtax, Ontario Health Premium and the basic Ontario tax reduction where applicable.
- B.C. tax reduction where applicable.
- Quebec 2026 provincial brackets and the federal Quebec abatement.
- Full internal precision; displayed results rounded to the nearest dollar.
What it does not include
RRSP room and contribution assumptions
Spousal or common-law partner RRSPs
Contributions in the first 60 days
Retirement projection assumptions
- The RRSP contribution entered in Step 01 is spread into equal end-of-month contributions.
- The selected 3%, 5% or 7% return is an illustrative constant annual return, converted to an equivalent monthly return. It is not a forecast or recommendation.
- The projection does not model investment fees, inflation, changing contributions, withdrawals, or tax on future RRSP/RRIF withdrawals. Values are shown in nominal dollars.
- The own-RRSP projection uses your age on December 31, 2026 as a calendar-year boundary. A selected full-year horizon may end in the year you turn 71 but may not extend beyond that year. At age 71 or older, this future own-RRSP contribution projection is withheld rather than automatically modeling a RRIF or spousal RRSP.
- The Step 03 tax-reduction total simply repeats the same 2026 tax result for the selected number of modeled years. It does not check future RRSP room and is not added to the investment projection.