What is the annual RRSP contribution limit?

Your annual RRSP limit is 18% of your earned income from the prior year, up to the CRA annual dollar cap ($31,560) plus any accumulated unused room.

What happens if I over-contribute to my RRSP?

The CRA allows a lifetime over-contribution buffer of $2,000. Any excess beyond $2,000 is subject to a 1% per month penalty tax until withdrawn.

CanadaRRSP Contribution & Tax Refund (18% Limit)Finance & Salary

Canada RRSP Contribution Limit, Tax Savings & Refund Calculator

Calculate your maximum Registered Retirement Savings Plan (RRSP) contribution limit (18% of prior year earned income up to $31,560), immediate income tax refund, and long-term tax-deferred retirement wealth.

Retirement & Pensions Savings & Deposits Taxes & Duties

Calculator Inputs

Live Real-Time

Previous Year Earned Income (CAD $)

CAD $

Quick select:

Planned RRSP Contribution Amount (CAD $)

CAD $

Quick select:

Your Combined Marginal Tax Rate (Federal + Provincial %)37.9 %

20 %54 %

Calculated ResultRRSP Contribution & Tax Refund (18% Limit)

Estimated Instant Income Tax Refund Cheque

4,548CAD $

Annual New RRSP Contribution Room Created (18% Cap)

16,200 CAD $

True Net Out-of-Pocket Cost of Your Contribution

7,452 CAD $

Detailed Calculation Breakdown

RRSP Deposit

12,000 CAD $

Max Room (18%)

16,200 CAD $

Tax Refund Cheque

4,548 CAD $

Net Cost

7,452 CAD $

Calculation Methodology

Max Annual Room = min(Earned Income * 18%, $31,560). Tax Refund = RRSP Contribution * Combined Marginal Tax Rate%.

Important Legal & Educational Disclaimer

Unused RRSP contribution room carries forward indefinitely. Over-contributing by more than $2,000 incurs a 1% per month penalty tax.

This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

You can contribute to your RRSP within the first 60 days of the calendar year (usually March 1 or 2) and deduct it against the previous tax year's income.

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