RRSP: save on taxes now, retire with more
For 2026 you can deduct up to 18% of your 2025 earned income, to a maximum of $33,810, plus unused room from past years. Deadline: March 1, 2027.
Book a free consultationHow an RRSP works
- Contributions reduce your taxable income — in Alberta, that can mean a refund of 22% to 48% of what you contribute.
- Investments grow tax-deferred until withdrawn.
- Withdrawals are taxed as income, ideally in retirement when your rate is lower.
- You can contribute until December 31 of the year you turn 71.
Your contribution room
| Tax year | RRSP dollar limit | Earned income needed to max out |
|---|---|---|
| 2025 | $32,490 | $180,500 (2024 income) |
| 2026 | $33,810 | $187,833 (2025 income) |
| 2027 | $35,390 | $196,611 (2026 income) |
Unused room carries forward indefinitely. You can over-contribute up to $2,000 over your lifetime without penalty; above that, a 1% monthly tax applies.
Home Buyers' Plan and Lifelong Learning Plan
Home Buyers' Plan
First-time buyers can withdraw up to $60,000 tax-free to buy or build a qualifying home, and repay over 15 years. For a first withdrawal from 2022 to 2028, repayments start in the fifth year after the year of the withdrawal (earlier withdrawals began in the second year). Pair it with a First Home Savings Account (FHSA: $8,000/year, $40,000 lifetime) for even more.
Lifelong Learning Plan
Withdraw up to $10,000 a year ($20,000 total) to fund full-time education for you or your spouse, repaid over 10 years.
Spousal RRSPs
The higher-income partner contributes and claims the deduction; the lower-income partner withdraws in retirement. Withdrawals within three calendar years of a contribution are taxed back to the contributor.
At retirement
By the end of the year you turn 71, convert your RRSP to a RRIF or an annuity. RRIFs have annual minimum withdrawals; from age 65, RRIF income can be split with a spouse and qualifies for the pension income credit.
Sources: CRA – limits · CRA – RRSPs · CRA – Home Buyers' Plan. Figures current for 2026; verified September 2026.
Estimate your room and refund
RRSP room & tax-refund estimator (Alberta)
Marginal rate is the combined federal and Alberta tax on your next dollar of income. Before is that rate without the RRSP deduction; after is the rate once your contribution is deducted. It stays the same or drops if the deduction moves you into a lower bracket.
Estimate uses 2026 federal and Alberta brackets and basic personal amounts only. Actual refunds depend on your other credits, deductions and tax already withheld.
RRSP Essentials
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RRSP questions
What is the RRSP deadline for the 2026 tax year?
How is my RRSP room calculated?
When do I have to convert my RRSP?
How much tax is withheld on an RRSP withdrawal?
Should I choose an RRSP or a TFSA?
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