RRSP calculator: tax refund and growth
An RRSP contribution is deducted from your income, so you get back tax at your marginal rate now and pay tax at your rate later, when you withdraw. This calculator shows both sides.
How to find your marginal rate
Your marginal rate is the combined federal and provincial tax on the next dollar you earn. It rises with income in steps (tax brackets). For 2026 the lowest federal rate is 14% on income up to $58,523; your province adds its own rates on top. The CRA publishes the federal and provincial rates for the current year, and most provincial finance ministries publish combined tables.
An RRSP deduction saves tax at your highest rates first. A large contribution can push part of the deduction down into a lower bracket, so the refund per dollar drops. If that happens, you can contribute now and deduct part of it in a later year when your income is higher.
Reading the result
- Refund now is the contribution times your marginal rate. It is an estimate: credits and your exact bracket change it.
- Value at withdrawal grows without yearly tax inside the RRSP.
- What you keep is that value minus tax at your future rate. If your rate in retirement is lower than today, the RRSP beats a TFSA; if it is higher, the TFSA usually wins. When the two rates are equal, an RRSP whose refund is also invested and a TFSA end up the same.
See how an RRSP saves tax and RRSP, TFSA or FHSA first for the reasoning, and Contribution limits for how much you can put in.