Tax year 2026
What does an RRSP contribution save me?
What an RRSP contribution saves you in income tax, at the rates the deduction actually spans.
A year, before deductions.
For the tax year.
Estimated tax saved
$3,050
on a $10,000 contribution, which is 30.5% of what you put in.
| Income tax without it | $19,771.98 |
|---|---|
| Income tax with it | $16,721.98 |
| Tax saved | $3,050.00 |
| Saving as a share of the contribution | 30.5% |
| Marginal rate at this salary | 30.5% |
The saving is 30.5% of the contribution rather than your 30.5% marginal rate, because the whole deduction sits inside one bracket here. Quoting the marginal rate would overstate the refund whenever a contribution spans more than one bracket.
This assumes you have the contribution room. Room accrues at 18 percent of the previous year's earned income up to an annual limit, less any pension adjustment, and the figure that matters is the one on your notice of assessment. Contributing beyond it attracts a penalty.
What this assumes
The figures are estimates of payroll deductions for employment income, worked out on the basic personal claim. They do not know about other credits you claimed on your TD1, and they do not cover self-employment, dividends or investment income. The methodology sets out every assumption and where these estimates stop being reliable.
Sources
- Current year tax rates and income brackets (2026) · Canada Revenue Agency · checked
- CPP contribution rates, maximums and exemptions, 2026 · Canada Revenue Agency · checked
- Canada Employment Insurance Commission sets the 2026 Employment Insurance premium rate · Employment and Social Development Canada · checked