CA Tax Tools

RRSP Contribution Room Calculator (2026)

Work out your RRSP deduction limit for 2026, 2025, or 2024. Combines 18% of your prior-year earned income with the annual dollar cap, adjusts for Pension Adjustment (PA), PSPA, and PAR, adds unused carry-forward, and flags any over-contribution penalty.

Your RRSP details

2026 annual cap: $33,810

Employment + net self-employment + net rental + royalties + support received

Enter 0 if no employer pension

From T215 — reduces room

From T10 — restores room

Check your CRA Notice of Assessment

New room (2026)

$15,300

Lesser of 18% × 2025 earned income ($15,300) or $33,810, after PA/PSPA/PAR

Total deduction limit

$27,300

New room + $12,000 carry-forward

Remaining room

$27,300

After $0 contributed

How we got there

18% × 2025 earned income$15,300
2026 dollar cap$33,810
Lesser of the two$15,300
New room generated in 2026$15,300
+ Unused room from prior years+$12,000
= Total deduction limit$27,300
− Contributions already made−$0
Remaining room to contribute$27,300

Quick reference — dollar limits

2026

$33,810

(based on 2025 earned income)

2025

$32,490

(based on 2024 earned income)

2024

$31,560

(based on 2023 earned income)

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How your RRSP room is built each year

Every tax year, CRA gives you new RRSP contribution room equal to the lesser of:

  • 18% of your previous year's earned income, or
  • the year's annual dollar limit: $33,810 for 2026, $32,490 for 2025, $31,560 for 2024.

That new room is then reduced by your Pension Adjustment (PA) from the prior year (T4 box 52), any Past-Service PA (PSPA) from T215, and increased by any Pension Adjustment Reversal (PAR) from T10 if you left a pension plan.

Unused room from every prior year since 1991 accumulates and carries forward indefinitely. It is added to your new room to form your total deduction limit.

What counts as "earned income"

  • Employment income (T4 box 14) less union dues and employment expenses
  • Net self-employment income (business, profession, commission)
  • Net rental income from real property
  • Royalties from works you created or invented
  • CPP/QPP disability pension benefits
  • Net research grants
  • Spousal or child support received (taxable)

Investment income, capital gains, RRIF/RRSP withdrawals, OAS, and regular CPP retirement do not generate new RRSP room.

Annual dollar limits

Contribution year Based on earned income from Dollar cap
20262025$33,810
20252024$32,490
20242023$31,560

Over-contribution penalty

CRA allows a lifetime $2,000 over-contribution cushion — amounts above your deduction limit up to $2,000 are not penalized (but aren't deductible either).

Over-contributions beyond the $2,000 cushion attract a 1%-per-month penalty until withdrawn. Withdraw promptly using form T3012A (pre-approved, tax-free) or T746 (retroactive). File form T1-OVP for the year of over-contribution regardless.

Age 71 deadline

You can contribute to your own RRSP up until December 31 of the year you turn 71. After that, you must convert to a RRIF, buy an annuity, or withdraw the full balance (taxable). A spousal RRSP remains an option if your spouse is under 71 and you have unused room.

Frequently asked questions

How is RRSP contribution room calculated?

Your new room equals the lesser of 18% of prior-year earned income or the annual dollar cap ($33,810 for 2026, $32,490 for 2025, $31,560 for 2024), reduced by your Pension Adjustment (PA) and PSPA, and increased by any PAR. Unused room from prior years carries forward indefinitely.

What counts as earned income for RRSP purposes?

Employment income (T4 box 14 less union dues and employment expenses), net self-employment income, net rental income, royalties on works you authored, CPP/QPP disability pensions, net research grants, and alimony or support received. Investment income, capital gains, and pension income do not count.

What is a Pension Adjustment?

The PA shown on your T4 box 52 is the value of pension benefits accrued last year in your employer's RPP or DPSP. It reduces your RRSP room dollar-for-dollar so you don't double up on retirement tax relief.

What happens if I contribute too much?

The first $2,000 over your deduction limit is an untaxed lifetime cushion (but also non-deductible). Anything above $2,000 excess attracts a 1%-per-month penalty until withdrawn.

Where is my exact contribution room?

CRA publishes your exact RRSP deduction limit on your Notice of Assessment and in CRA My Account. This calculator is a projection tool — use it to plan contributions or sanity-check the CRA figure.

When must I close my RRSP?

By December 31 of the year you turn 71. Convert to a RRIF, buy an annuity, or withdraw as taxable income. A spousal RRSP is still usable if your spouse is under 71.

Sources

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Last updated April 19, 2026Tax year 2026

Data sources: CRA (canada.ca)

This tool is general information only, not financial advice.

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