Free tool · Personal tax
RRSP tax savings calculator
See roughly how much federal and Ontario tax an RRSP deduction could save in 2026 by comparing the tax on your income with and without it. The saving is usually close to your marginal rate, but not always.
An illustration of tax before and after an RRSP deduction, not your result.
Visual labels: Tax before; Tax after; Tax saved.Your scenario
Amounts are displayed in CAD for the 2026 tax year, for a resident of Ontario.
- Tax without the deduction
- $18,462.25
- Tax with the deduction
- $15,497.25
- Taxable income after the deduction
- $80,000.00
- Tax saved per dollar deducted
- 29.65%
Federal and Ontario tax only. Your RRSP deduction limit and the contribution deadline decide how much you can actually deduct.
Calculated on this device. These inputs are not submitted to Sora.
How the calculation works
Tax saved = 2026 federal and Ontario tax on your taxable income − the same tax on your income after the RRSP deduction. Both amounts come from the Ontario income tax calculator, so the result reflects the brackets, the Ontario surtax, the Ontario Health Premium and the federal basic personal amount phase-out. The saving per dollar deducted is the tax saved divided by the deduction.
A worked example
At an illustrative $90,000 of taxable income before the deduction, 2026 tax is $18,462.25. A $10,000 RRSP deduction brings income to $80,000 and tax to $15,497.25, so the estimated saving is $2,965.00, or 29.65 cents per dollar. Both incomes sit in the 20.5% federal and 9.15% Ontario brackets, so the saving matches that combined rate. A deduction that spans a bracket edge saves less per dollar on the part that falls into the lower bracket.
Assumptions and limits
The tool does not know your RRSP deduction limit. That limit depends on your earned income, any pension adjustment and unused room, and it appears on your notice of assessment. The 2026 annual dollar ceiling is $33,810, and the tool flags a deduction above it. Contributions made in the first 60 days of 2027 can generally be deducted for 2026, but you choose the year to claim them, and it can pay to carry a deduction to a higher-income year. The saving is a deferral as well as a reduction: withdrawals are taxable, and the estimate says nothing about investment growth, over-contributions, spousal plans or the Home Buyers’ Plan. Credits, dividends, capital gains and income-tested benefits are not modelled.
General educational information. Inputs stay on this device and are not submitted. Confirm the assumptions before using a result in a business decision.
Source and further reading
2026 figures checked October 24, 2026 against the CRA pages; the RRSP dollar ceiling is from Sora’s 2026 tax guide: CRA: tax rates and income brackets for 2026; CRA: T4127 payroll deductions formulas (federal and Ontario amounts, surtax and Health Premium). The examples above use Sora’s own illustrative figures.
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