An RRSP lets you deduct contributions from your taxable income, so you get tax back now, and your savings grow tax-deferred until you withdraw them, usually in retirement when your tax rate is lower.
2026 limit and deadline
- Your 2026 room is 18% of your 2025 earned income, up to $33,810, plus unused room carried forward, minus any pension adjustment.
- The deadline for 2026 contributions is March 1, 2027.
- Your exact limit is on your latest Notice of Assessment, or in CRA My Account.
How the refund works
If you're in a 30% tax bracket, a $10,000 contribution can reduce your tax by about $3,000. Many people put that refund into their TFSA, or straight back into the RRSP.
Useful features
- Spousal RRSP: you contribute and get the deduction, and your spouse withdraws in retirement, which can split income. See spousal RRSPs.
- Home Buyers' Plan: first-time buyers can borrow from their RRSP for a down payment and repay it over time.
- Lifelong Learning Plan: borrow for full-time education.
Who might skip the RRSP
If your income is low now and you expect it to be similar or higher in retirement, a TFSA is often better. See who should avoid RRSPs and TFSA vs RRSP.
Common questions
What is the RRSP limit for 2026?
18% of your 2025 earned income, up to a maximum of $33,810, plus any unused room from previous years.
What happens if I over-contribute?
You're allowed a $2,000 cushion. Beyond that, the excess is taxed at 1% a month until it's withdrawn.
When do I have to close my RRSP?
By the end of the year you turn 71, you convert it to a RRIF or an annuity, or withdraw it as taxable income.