RRSP Tax Savings Calculator

How RRSP Tax Savings Work

An RRSP contribution reduces your taxable income dollar-for-dollar. The tax you save equals your contribution multiplied by your marginal tax rate — the rate you pay on your next dollar of income.

For example, if you earn $95,000 in Alberta (marginal rate ~38.29%) and contribute $15,000 to your RRSP, you save approximately $5,744 in taxes.

2025 RRSP Contribution Limits

• Maximum 2025 contribution: 18% of 2024 earned income
• Dollar limit: $32,490 for 2025
• Unused room carries forward indefinitely
• Your exact limit is on your CRA Notice of Assessment
• Deadline: March 2, 2026 (60 days after Dec 31, 2025)

RRSP vs TFSA: Which Is Better?

RRSPs reduce taxable income today but withdrawals are taxed. TFSAs use after-tax dollars but withdrawals are tax-free. Generally, RRSPs are better if you expect a lower tax rate in retirement. TFSAs are often better for lower-income earners or short-term savings goals.

Many Canadians benefit from maximizing both. A Swift Accounting advisor can help you determine the optimal balance for your situation.

When to Make an RRSP Contribution

• Before year-end to get the refund faster with filing
• Lump-sum contributions have the same tax benefit as monthly
• Over-contributions (above room) trigger a 1%/month penalty
• Never contribute more than your available room