2025 Tax Year Canada

RRSP Tax
Savings Calculator

See exactly how much you'll save in taxes with RRSP contributions. Calculate your refund increase and find your optimal contribution amount.

Instant Tax Savings

See your exact tax savings based on your marginal rate. A $5,000 RRSP contribution at 30% = $1,500 immediate tax savings.

Optimal Contribution

Find the sweet spot for contributions. Sometimes smaller amounts make more sense if you expect lower income in retirement.

RRSP vs FHSA vs TFSA

Compare which account gives you the best tax advantage based on your current income and goals.

01

Province/Territory

02

Income Sources

Click + to add your first income source

03

Deductions & Credits

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2025 Limit:$32,490 or 18% of income
Get $25 bonus → Open RRSP
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Annual Limit:$8,000
Save tax-free → Open FHSA
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RRSP Tax Savings by Income Level

Income Marginal Rate* $5,000 RRSP Saves $10,000 RRSP Saves
$50,00029.65%$1,483$2,965
$75,00029.65%$1,483$2,965
$100,00037.16%$1,858$3,716
$150,00043.41%$2,171$4,341
$200,00047.97%$2,399$4,797

*Ontario marginal rates shown. Your province may differ.

RRSP vs TFSA vs FHSA

RRSP

  • ✓ Tax deduction now
  • ✓ Tax-deferred growth
  • ✗ Taxed on withdrawal
  • Best for: High earners expecting lower retirement income

TFSA

  • ✗ No tax deduction
  • ✓ Tax-free growth
  • ✓ Tax-free withdrawal
  • Best for: Lower earners or flexible savings

FHSA

  • ✓ Tax deduction now
  • ✓ Tax-free growth
  • ✓ Tax-free for home purchase
  • Best for: First-time home buyers

RRSP Tax Savings FAQ

When should I contribute to RRSP?

Contribute when your marginal rate is high (usually during peak earning years). If you're in a low bracket, TFSA might be better until your income increases.

Can I carry forward unused RRSP room?

Yes! Unused RRSP contribution room carries forward indefinitely. Check your CRA My Account for your available room.

What happens if I over-contribute?

You have a $2,000 buffer, but over-contributions beyond that are penalized 1% per month. Withdraw the excess immediately if this happens.

Should I invest my RRSP refund?

Yes! The most effective strategy is to reinvest your RRSP refund. This accelerates compound growth significantly over time.

Ready to open an RRSP?

Get a $25 bonus when you open a Wealthsimple RRSP and start saving on taxes today.

Open RRSP + Get $25

How BracketBuddy Works

1

Enter Your Income

Add all your income sources: employment (T4), self-employment, investments, rental properties, and more. Use your paystub or tax slips to fill in the details.

2

Add Deductions

Enter your RRSP contributions, FHSA, childcare expenses, and other deductions that reduce your taxable income.

3

Get Your Results

See your estimated federal and provincial taxes, effective tax rate, and whether you'll owe money or get a refund.

4

Optimize & File

Review personalized recommendations to reduce your tax bill, then file your taxes with confidence.