Tax on a $5,000 RRSP Withdrawal in Ontario (2026)
What you get in hand, what you owe or get back at filing, and how 2026 federal and Ontario tax on the withdrawal changes with the rest of your income.
Withheld by your bank
$500
10% of $5,000
Cash you receive
$4,500
on the day of the withdrawal
Final 2026 tax on it
$0–$1,574
depends on your other income (table below)
If the withdrawal is your only income this year, the tax is $0 (0.0%) and you get $500 of the withholding back when you file. Put in your own income in the RRSP withdrawal tax calculator, prefilled with this withdrawal.
$5,000 on top of your other income
The whole withdrawal is added to your taxable income, so the more you already earn, the higher the rate it is taxed at. Other income means employment, pension, CPP, OAS or anything else taxable in 2026.
| Other income | Tax on withdrawal | Effective | Marginal | At filing | You keep | Half next year | OAS clawback* |
|---|---|---|---|---|---|---|---|
| $0 | $0 | 0.0% | 14.0% | +$500 | $5,000 | — | — |
| $20,000 | $1,498 | 30.0% | 19.1% | −$998 | $3,502 | costs $7 | — |
| $40,000 | $953 | 19.1% | 19.1% | −$453 | $4,048 | — | — |
| $60,000 | $1,483 | 29.6% | 29.6% | −$983 | $3,518 | — | — |
| $80,000 | $1,483 | 29.6% | 29.6% | −$983 | $3,518 | — | — |
| $100,000 | $1,574 | 31.5% | 31.5% | −$1,074 | $3,426 | — | $750 |
"At filing" is the withheld $500 minus the real tax: + is a refund, − is a balance owing. "Half next year" compares taking $2,500 this year and $2,500 next year, with the same other income both years. *If you're 65 or older and your other income includes OAS, the withdrawal also triggers this much OAS recovery tax. Tax includes the Ontario Health Premium.
Need exactly $5,000 in your account?
Withdraw $6,250. The bank withholds $1,250 (20%) and you receive $5,000. The whole $6,250 counts as income, so the tax at filing is on that, not on $5,000.
Decisions that change the bill
- Splitting across two tax years: no saving at these income levels in Ontario.
- If you're 65+ and get the GIS: a single senior whose only other income is OAS ($9,000 a year) would pay $0 of tax on this withdrawal and lose $3,237 of GIS over the next July-to-June benefit year, because the GIS is based on last year's income and RRSP withdrawals count. Together that is 65% of the withdrawal. TFSA withdrawals don't affect the GIS. See OAS and GIS payment amounts.
- Buying a first home or going back to school: withdrawals under the Home Buyers' Plan or the Lifelong Learning Plan are not taxed if you repay them on schedule.
- A spousal RRSP: if your spouse contributed in this year or the two years before, the withdrawal is taxed in their hands instead. See the spousal RRSP calculator.
$5,000 in other provinces
Tax on the withdrawal with no other income, and with $60,000.
| Province | Only income | +$60,000 |
|---|---|---|
| British Columbia | $0 | $1,410 |
| Ontario | $0 | $1,483 |
| Alberta | $0 | $1,501 |
| Manitoba | $0 | $1,663 |
| Quebec | $0 | $1,806 |
How this is worked out
- Withholding: one withdrawal of $5,000 falls in the lowest tier, 10% up to $5,000, 20% up to $15,000, 30% over $15,000.
- Tax: 2026 federal and Ontario brackets and basic personal amounts, single filer, on the withdrawal added to the other income shown.
- Age amount: the table is for any age and leaves it out. The 65+ GIS case above includes the federal and provincial age amounts. RRSP withdrawals do not qualify for the pension income credit.
- OAS clawback: 15% of net income above $95,323 in 2026, until the OAS is fully repaid at $155,320 (ages 65 to 74).
- GIS: a single senior with the full OAS ($762.50 a month at 65 to 74) and this quarter's GIS, up to $1,138.90 a month and nothing once other income reaches $23,112.