CanPay InsightsTax saved by a $5,000 RRSP contribution (2026)
| Salary | BC | Ontario | Alberta | Quebec |
|---|---|---|---|---|
| $50,000 | $995 | $1,103 | $1,100 | $1,285 |
| $80,000 | $1,410 | $1,482 | $1,525 | $1,806 |
| $100,000 | $1,410 | $1,508 | $1,525 | $1,806 |
| $150,000 | $2,035 | $2,170 | $1,800 | $2,373 |
Federal plus provincial income tax, with and without the contribution. An RRSP does not lower CPP or EI. Your 2026 limit is 18% of last year's earned income, up to $33,810, plus unused room from earlier years.
Why the saving depends on your salary
An RRSP contribution is deducted from your taxable income, and the dollars it removes are your highest-taxed ones. The same contribution therefore saves more at $150,000 than at $50,000, and more in a province with higher top rates.
When you get the money
Contribute on your own and the saving arrives as a refund when you file. Contribute through a group RRSP at work and less tax is withheld from each cheque instead. You can also ask CRA, on form T1213, to let your employer withhold less for contributions you make yourself.
Common Searches
Frequently Asked Questions
How much tax do I save with an RRSP contribution?
Roughly the contribution times your marginal income-tax rate. On $80,000 in 2026, $5,000 saves about $1,410 in BC, $1,482 in Ontario and $1,525 in Alberta.
Does an RRSP contribution lower CPP or EI?
No. CPP and EI are charged on your gross pay, so an RRSP lowers only federal and provincial income tax.
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