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Tax on a $150,000 RRSP Withdrawal (2026)

Withdraw $150,000 from your RRSP in 2026 and CRA withholds $45,000 immediately (30%) — or $43,500 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).

Withheld at source (outside Quebec)

$45,000

30% of $150,000 — you receive $105,000 cash

Withheld at source (Quebec)

$43,500

29% combined fed + QC — you receive $106,500 cash

CRA Withholding Tiers (why 30%?)

Withdrawal amount Outside Quebec Quebec (fed + prov)
Up to $5,00010%19% (5% + 14%)
$5,001 – $15,00020%24% (10% + 14%)
Over $15,00030%29% (15% + 14%)

Source: CRA S3-F10-C3 and Regulation 103. Withholding is a prepayment — your final tax is your marginal rate, reconciled on your T1.

Per-Province Final Tax (if RRSP is your only income for 2026)

Pure withdrawal scenario — e.g. retiree with no employment or CPP/OAS yet. Assumes 2026 basic personal amount (BPA) shelters the first ~$16,129 federally.

Province Withheld Actual tax Effective rate Refund / (Owing) Net in hand
Ontario $45,000 $38,163 25.0% $6,836.70 $111,837
British Columbia $45,000 $38,433 26.0% $6,567.32 $111,567
Alberta $45,000 $38,410 26.0% $6,590.27 $111,590
Quebec $43,500 $47,596 32.0% ($4,096.31) $102,404
Manitoba $45,000 $45,285 30.0% ($284.51) $104,715
Saskatchewan $45,000 $41,975 28.0% $3,025.39 $108,025
Nova Scotia $45,000 $47,872 32.0% ($2,872.33) $102,128
New Brunswick $45,000 $44,670 30.0% $329.80 $105,330
Newfoundland and Labrador $45,000 $45,429 30.0% ($428.97) $104,571
Prince Edward Island $45,000 $47,070 31.0% ($2,069.81) $102,930
Northwest Territories $45,000 $38,434 26.0% $6,565.84 $111,566
Yukon $45,000 $38,007 25.0% $6,993.13 $111,993
Nunavut $45,000 $35,263 24.0% $9,737.18 $114,737

With Other Income (Ontario 2026)

What a $150,000 withdrawal actually costs when stacked on top of your existing income. Effective rate rises as your marginal rate climbs.

Other income: $0

$38,163

25.0% effective

Withheld $45,000 → refund $6,837

Other income: $30,000

$46,856

31.0% effective

Withheld $45,000 → owe $1,856

Other income: $60,000

$53,099

35.0% effective

Withheld $45,000 → owe $8,099

Other income: $100,000

$58,003

39.0% effective

Withheld $45,000 → owe $13,003

Run the numbers with your exact province, other income, and year: Open RRSP Withdrawal Tax Calculator →

Tax on Other RRSP Withdrawal Amounts

RRSP Withdrawal Tax by Province

Related Calculators

Frequently asked questions

How much tax do you pay on a $150,000 RRSP withdrawal?

CRA withholds $45,000 at source outside Quebec (30%), or $43,500 (29%) in Quebec. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $38,163 (25.0% effective).

How much is withheld on a $150,000 RRSP withdrawal?

CRA withholds $45,000 (30%) outside Quebec or $43,500 (29%) combined federal + provincial in Quebec. Tiers: 10%/20%/30% on ≤$5k / $5,001–$15k / $15k+ (doubled to 19%/24%/29% in Quebec).

Is a $150,000 RRSP withdrawal taxable income?

Yes — fully added to your taxable income for the year and taxed at your combined federal + provincial marginal rate. The 30% withholding is a deposit, not the final bill.

Does splitting a $150,000 withdrawal reduce tax?

Splitting $150,000 into several ≤$5,000 withdrawals drops each withholding to 10% (19% in Quebec) — but final tax at filing is identical regardless of splits. Only your cash flow before filing changes. Note: CRA can apply higher withholding if withdrawals are clearly coordinated to game the tiers.

Last updated May 1, 2026Tax year 2026

Data sources: CRA (canada.ca)

This tool is general information only, not financial advice.

Reviewed by CA Tax Tools Editorial Desk

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