How much you can contribute, how to find your exact limit, and how to maximize your tax deduction
The RRSP contribution limit for 2026 is 18% of your 2025 earned income, to a maximum of $32,490. Every dollar you contribute reduces your taxable income for the year — making RRSP contributions one of the most powerful tax-saving tools available to Canadians.
| Tax Year | Maximum RRSP Limit |
|---|---|
| 2022 | $29,210 |
| 2023 | $30,780 |
| 2024 | $31,560 |
| 2025 | $32,490 |
| 2026 | 18% of 2025 earned income, max $32,490 |
Note: The 2026 RRSP limit applies to contributions made in 2026 or in the first 60 days of 2027. Your personal limit is shown on your Notice of Assessment (NOA) from CRA.
The easiest way is to log in to CRA My Account:
Your RRSP room is also printed on your Notice of Assessment each year. Always use the CRA figure — not your financial institution's estimate.
Any unused RRSP contribution room from previous years carries forward indefinitely. So if you have not maxed out your RRSP in prior years, you may have significantly more room than $32,490.
Example: If you had $15,000 of unused room from prior years plus $20,000 new room in 2026, your total available room is $35,000. You can contribute the full $35,000 in 2026.
To claim an RRSP deduction on your 2025 tax return, contributions must be made by March 2, 2026 (first 60 days of 2026). This deadline has passed for the 2025 return.
For your 2026 tax return, you can contribute any time during 2026 or in the first 60 days of 2027 (approximately March 2, 2027).
RRSP contributions reduce your taxable income dollar-for-dollar. The tax you save depends on your marginal tax rate:
| Income Range (Ontario) | Marginal Rate | Tax Saved on $10,000 RRSP |
|---|---|---|
| $57,375 – $100,392 | ~43% | ~$4,300 |
| $100,392 – $111,733 | ~48% | ~$4,800 |
| $111,733 – $150,000 | ~52% | ~$5,200 |
| Over $246,752 | ~53% | ~$5,300 |
You are allowed a $2,000 lifetime over-contribution buffer — contributions above your limit up to $2,000 are not penalized. However, contributions beyond the $2,000 buffer are penalized at 1% per month until withdrawn.
Warning: The $2,000 buffer is not deductible — it only protects you from the penalty. Do not intentionally over-contribute beyond this amount.
You must convert your RRSP to a RRIF (Registered Retirement Income Fund) or purchase an annuity by December 31 of the year you turn 71. After this, you can no longer contribute to your own RRSP — but you can contribute to a spousal RRSP if your spouse is under 71.
Use the Smart Canada Tax RRSP calculator to see exactly how much tax you save based on your income and province.
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