Tax you save

$1,633

on a $5,000 RRSP contribution

Net cost of the contribution

$3,368

Federal tax saved

$1,025

Provincial tax saved

$608

Saving per dollar deducted

32.6%

Marginal tax rate before contributing

28.5%

Amount deducted

$5,000

Deduction room used

$13,500

2026 RRSP dollar limit

$33,810

• Room estimated as 18% of this income up to the 2026 RRSP dollar limit of $33,810. Your real limit is on your latest Notice of Assessment: it uses last year's earned income, pension adjustments and unused room carried forward.
• Tax saved is the drop in federal and provincial income tax on a salary, with only the basic personal amounts claimed. CPP, EI and QPIP do not change.
• You get the saving as a refund when you file, or on each paycheque if the contribution is made through payroll.