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 $5,000
10%
19% (5% + 14%)
$5,001 – $15,000
20%
24% (10% + 14%)
Over $15,000
30%
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 ~$16,452 federally.
Province
Withheld
Actual tax
Effective rate
Refund / (Owing)
Net in hand
Ontario
$45,000
$41,626
27.8%
$3,374.36
$108,374
British Columbia
$45,000
$38,433
25.6%
$6,567.32
$111,567
Alberta
$45,000
$38,410
25.6%
$6,590.27
$111,590
Quebec
$43,500
$47,596
31.7%
($4,096.31)
$102,404
Manitoba
$45,000
$45,285
30.2%
($284.51)
$104,715
Saskatchewan
$45,000
$41,975
28.0%
$3,025.39
$108,025
Nova Scotia
$45,000
$47,872
31.9%
($2,872.33)
$102,128
New Brunswick
$45,000
$44,670
29.8%
$329.80
$105,330
Newfoundland and Labrador
$45,000
$45,263
30.2%
($263.15)
$104,737
Prince Edward Island
$45,000
$47,066
31.4%
($2,066.09)
$102,934
Northwest Territories
$45,000
$38,434
25.6%
$6,565.84
$111,566
Yukon
$45,000
$38,007
25.3%
$6,993.13
$111,993
Nunavut
$45,000
$35,263
23.5%
$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.
How much tax do you pay on a $150,000 RRSP withdrawal?
CRA withholds 30% at source outside Quebec (29% in Quebec) — that's $45,000 on $150,000. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $41,626 (27.8% effective) and you get a refund of $3,374.
How much is withheld on a $150,000 RRSP withdrawal?
CRA withholding tax on $150,000: $45,000 (30%) in every province except Quebec, and $43,500 (29%) combined federal + provincial in Quebec. Withholding tiers are 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. The full $150,000 is added to your taxable income for the year and taxed at your combined federal + provincial marginal rate. The 30% withholding is a deposit against that tax, not the final tax owed — if your marginal rate is higher you'll owe more; if lower you'll get a refund.
Does it matter how I split a $150,000 withdrawal?
Yes — withholding tiers apply per withdrawal, so splitting $150,000 into several ≤$5,000 withdrawals drops the immediate withholding to 10% each (19% in Quebec). CRA is wise to this: they may apply a higher rate if withdrawals are clearly coordinated to reduce withholding. Final tax at filing is identical regardless of splits — only your cash flow before filing changes.
