See how much tax an RRSP contribution will save you in your province, and what the contribution really costs you after the refund.
A year, before tax
The amount you’ll deduct
Your tax refund
$1,633
32.7% of your contribution comes back
What this means
Your contribution is deducted from your income, so the refund depends on your tax rate: about 32.7% here. You’ll pay tax when you take the money out in retirement, ideally at a lower rate.
Contributions in the first 60 days of the year can count towards last year’s return.
Next step
| You put in | Refund | Real cost |
|---|---|---|
| $1,000 | $297 | $704 |
| $2,500 | $891 | $1,609 |
| $5,000 | $1,633 | $3,368 |
| $10,000 | $3,115 | $6,885 |
| $20,000 | $5,804 | $14,196 |
The refund is the income tax you save by deducting the contribution. CPP and EI aren’t affected.
A $5,000 RRSP contribution in Ontario:
| Income | Refund | Real cost |
|---|---|---|
| $50,000 | $1,103 | $3,897 |
| $75,000 | $1,633 | $3,367 |
| $120,000 | $1,995 | $3,005 |
To choose between them, compare them with the RRSP vs TFSA calculator or read our guide to RRSP vs TFSA.
Last updated
About your top combined tax rate times your contribution. On $75,000 in Ontario, a $5,000 contribution saves about $1,633.
18% of last year’s earned income, up to $33,810 for 2026, less any pension adjustment, plus unused room from earlier years. It’s on your notice of assessment.
Contributions in the first 60 days of the year can be deducted on the previous year’s return.
Less so: if your tax rate is low now, the refund is small, and withdrawals in retirement may be taxed at a similar rate. A TFSA is often better.