RRSP and Canada child benefit 2026: how much more will you get?
Enter your province, family net income, RRSP or FHSA deduction and number of children: the calculator adds up the tax saved and the extra child benefit.
Total gain from the deduction
$1,505
Of which $507 more Canada child benefit, July 2027 to June 2028.
| Tax saved | $998 |
| Extra child benefit | $507 |
| Effective rate of the deduction | 30.1% |
Thresholds and reduction rates for July 2026 to June 2027; next year's will be indexed. In Quebec, the Family Allowance adds its own calculation, not counted here.
Prepared by Radif Partners · How we calculate · limits and tax tables read on canada.ca · estimates only, not a notice of assessment
An RRSP or FHSA deduction lowers your net income, and with it the adjusted family net income used to calculate the Canada child benefit. The benefit is reduced by a percentage of family income above $38,237, then by another percentage above $82,847: from 7% and 3.2% for one child to 23% and 9.5% for four or more. Each dollar deducted gives that percentage back, on top of the tax saved. In Ontario, a family with two children, $60,000 of family net income and one parent earning $40,000 gains $953 in tax and $675 in benefit by deducting $5,000, or 32.6% of the contribution. There is a one-year lag: a 2026 deduction raises the benefit paid from July 2027 to June 2028. The thresholds used are those for July 2026 to June 2027, indexed every year.
The income that sets the benefit
The Canada child benefit is not taxable, but it shrinks as family income rises. Under the Canada Revenue Agency calculation, the figure that counts is adjusted family net income: the net income on line 23600 of your return, plus your spouse's or common-law partner's, with a few uncommon adjustments. An RRSP or FHSA deduction lowers that net income. It therefore lowers the benefit reduction, just as a drop in pay would, without you earning any less.
For July 2026 to June 2027, based on 2025 income, the maximum is $8,157 per child under 6 and $6,883 per child aged 6 to 17. It is not reduced below $38,237 of adjusted family net income. Between $38,237 and $82,847, it drops by a first percentage of the excess; above $82,847, by a fixed amount plus a second, smaller percentage.
Reduction rates by number of children
| Children | Rate from $38,237 to $82,847 | Rate above $82,847 | Gain for $6,000 deducted at $70,000 | Gain at $110,000 |
|---|---|---|---|---|
| 1 | 7.0% | 3.2% | $420 | $192 |
| 2 | 13.5% | 5.7% | $810 | $342 |
| 3 | 19.0% | 8.0% | $1,140 | $480 |
| 4 or more | 23.0% | 9.5% | $1,380 | $570 |
The reduction rate works like an extra tax on family income. A family with four children at $70,000 loses 23% of benefit on each extra dollar of income, on top of tax. Each dollar deducted gives the same amount back. Above $82,847 the rate falls, and so does the gain.
A full example
An Ontario family has two children and $60,000 of adjusted family net income. The parent earning $40,000 puts $5,000 into an RRSP and deducts it on the 2026 return. Their tax drops by $953, worked out with the 2026 brackets. Family income falls to $55,000, and the benefit paid from July 2027 to June 2028 rises by about $675. In all, the contribution brings in $1,628, or 32.6% of its amount, well above the parent's marginal rate alone.
A family straddling the second threshold gains less: at $85,000 of family income, with one parent at $55,000, the same deduction brings $998 in tax and $507 in benefit, because only part of the dollars deducted fall back below $82,847. The calculator does the split for your income.
The tax saving alone, without the benefit
Refund or tax saved
$953
| Federal tax saved | $700 |
| Provincial tax saved | $253 |
| Taxable income after the deduction | $35,000 |
| Total tax before / after | $4,661 / $3,708 |
What to know before counting on it
The gain comes a year late. The benefit is recalculated every July using the previous year's income, so a 2026 deduction changes nothing in current payments. Next period's thresholds will be indexed, so the exact figure will differ slightly. With shared custody, each parent gets half of what they would receive with full custody, based on their own adjusted family net income, so the gain from a deduction is roughly halved.
The effect also runs the other way. A taxable RRSP withdrawal raises family income and lowers the next period's benefit, whereas a TFSA withdrawal has no effect. It is one of the points to weigh in the RRSP vs TFSA choice for parents. An FHSA deduction has the same effect as an RRSP deduction.
Quebec and the provinces
The CRA also administers child and family benefits for some provinces and territories, sometimes combined with the federal benefit in a single monthly payment, sometimes paid separately. In Quebec, the Family Allowance comes on top of the federal benefit, with its own calculation. The calculator counts none of these: it only works out the federal benefit and tax, so the real gain from a deduction may differ from the one shown.