RRSP tax refund 2026: how much will you get back?
Enter your province, your taxable income and the amount you plan to deduct: the calculator works out your federal and provincial tax before and after the deduction.
Refund or tax saved
$1,806
Average rate on the contribution: 36.1%; marginal rate before: 36.1%.
| Federal tax saved | $856 |
| Quebec tax saved | $950 |
| Taxable income after the deduction | $65,000 |
| Total tax before / after | $14,812 / $13,006 |
The “refund” is the drop in your tax for the year: it comes back as cash only if the tax withheld from your pay exceeded the tax owed.
| Province or territory | Marginal rate | Tax saved |
|---|---|---|
| Quebec | 36.1% | $1,806 |
| Ontario | 29.6% | $1,483 |
| British Columbia | 28.2% | $1,410 |
| Alberta | 30.5% | $1,525 |
| Manitoba | 33.3% | $1,663 |
| Saskatchewan | 33.0% | $1,650 |
| Nova Scotia | 37.2% | $1,858 |
| New Brunswick | 34.5% | $1,725 |
| Newfoundland and Labrador | 35.0% | $1,750 |
| Prince Edward Island | 37.1% | $1,829 |
| Yukon | 29.5% | $1,475 |
| Northwest Territories | 29.1% | $1,455 |
| Nunavut | 27.5% | $1,375 |
Prepared by Radif Partners · How we calculate · limits and tax tables read on canada.ca · estimates only, not a notice of assessment
An RRSP refund is not a bonus: it is the tax you do not pay on the part of your income you deduct. In 2026, an Ontario resident with $70,000 of taxable income who deducts $5,000 pays $1,483 less tax, which is the 29.6% marginal rate applied to the whole contribution. At the same income, the saving is $1,806 in Quebec and $1,525 in Alberta. When the deduction takes your income below a bracket threshold, part of it is saved at the lower rate and the average drops. The saving only turns into a cheque if the tax withheld from your pay was more than the tax you owe. It is not final either: RRSP withdrawals will be taxed later. For the contribution to pay off, the money you get back has to be invested too.
Where the refund comes from
An RRSP contribution is deducted from your income. Your taxable income falls by the same amount, and so does the tax on it. As long as you stay in the same bracket, each dollar deducted saves your combined federal and provincial marginal rate. In Ontario, at $70,000 of taxable income, that rate is 29.6% in 2026: deducting $5,000 takes $1,483 off your tax. The brackets come from the rates published by the Canada Revenue Agency.
It is called a refund because that is how it usually arrives: your employer withheld tax on $70,000 of income, while you only owe tax on $65,000. The difference comes back after you file. If too little tax was withheld to begin with, the deduction first shrinks the balance owing, and there may be no cheque at all.
The saving by income and province
The table applies the same $5,000 deduction at five income levels in three provinces. The saving rises with income, but in steps: it stays flat between two bracket thresholds, then jumps when you reach the next rate.
| Taxable income | Quebec | Ontario | Alberta |
|---|---|---|---|
| $40,000 | $1,285 (25.7%) | $953 (19.1%) | $1,100 (22.0%) |
| $60,000 | $1,615 (36.1%) | $1,254 (29.6%) | $1,196 (28.5%) |
| $80,000 | $1,806 (36.1%) | $1,483 (29.7%) | $1,525 (30.5%) |
| $100,000 | $1,806 (36.1%) | $1,574 (31.5%) | $1,525 (30.5%) |
| $150,000 | $2,373 (47.5%) | $2,170 (45.0%) | $1,800 (36.0%) |
When the deduction crosses a threshold, only part of it is saved at your starting marginal rate. In Ontario, someone at $60,000 who deducts $10,000 starts at 29.6% but drops below the first federal threshold along the way: they save $2,251, an average rate of 22.5%. The calculator shows that average rate under the result. Splitting a large deduction over two years can sometimes keep more of it at the higher rate, which is one reason to look at the year of the deduction below.
In Quebec, two returns and two savings
Quebec runs its own income tax, so residents generally file a federal return and a separate Revenu Québec return, and the RRSP deduction lowers both taxes. The federal part is smaller than elsewhere because Quebec residents get an abatement of 16.5% of basic federal tax. At $70,000 of income, a $5,000 deduction cuts federal tax by $856 and Quebec tax by $950, $1,806 in total. Quebec rates come from Revenu Québec.
Your combined marginal rate
2026 combined marginal rate, Quebec
36.1%
| Federal share (after the 16.5% abatement) | 17.1% |
| Quebec share | 19.0% |
| Total tax on this income | $14,812 |
| Average rate | 21.2% |
Why it is not free money
The tax saved today will be paid later, on withdrawals. An RRSP defers tax; it does not erase it. The real gain depends on the gap between your rate today and the one that will apply to withdrawals, and on one condition: the refund has to be saved as well. Spent, it leaves less invested than a TFSA would. The full comparison is on the RRSP vs TFSA page.
There are side effects too. The deduction lowers the net income used for benefits such as the Canada Child Benefit, so the benefit paid from July of the following year can go up, under the CRA calculation. The details are on the RRSP and child benefit page.
Choosing the year of the deduction
Contributing and deducting are two separate steps. A contribution you do not deduct right away stays on your record and can be deducted in a later year, up to that year's limit, according to the CRA page on the deduction limit. You report it on Schedule 7 for the year you paid it. That helps when your income is about to rise: in Ontario, $5,000 deducted at $45,000 saves $953, and $1,483 if deducted in a year at $80,000. Meanwhile the money grows sheltered from tax.
To get the saving during the year rather than in the spring, someone who contributes through regular payments under a contract with a financial institution can use Form T1213, Request to Reduce Tax Deductions at Source. The CRA can then authorize your employer to withhold less tax on each pay.