Tax on a $20,000 RRSP Withdrawal (2026)
Withdraw $20,000 from your RRSP in 2026 and CRA withholds $6,000 immediately (30%) — or $5,800 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$6,000
30% of $20,000 — you receive $14,000 cash
Withheld at source (Quebec)
$5,800
29% combined fed + QC — you receive $14,200 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 ~$16,129 federally.
| Province | Withheld | Actual tax | Effective rate | Refund / (Owing) | Net in hand |
|---|---|---|---|---|---|
| Ontario | $6,000 | $851 | 4.0% | $5,149.22 | $19,149 |
| British Columbia | $6,000 | $877 | 4.0% | $5,123.38 | $19,123 |
| Alberta | $6,000 | $497 | 2.0% | $5,503.28 | $19,503 |
| Quebec | $5,800 | $561 | 3.0% | $5,238.52 | $19,439 |
| Manitoba | $6,000 | $952 | 5.0% | $5,047.52 | $19,048 |
| Saskatchewan | $6,000 | $497 | 2.0% | $5,503.28 | $19,503 |
| Nova Scotia | $6,000 | $1,206 | 6.0% | $4,794.10 | $18,794 |
| New Brunswick | $6,000 | $1,092 | 5.0% | $4,907.70 | $18,908 |
| Newfoundland and Labrador | $6,000 | $1,263 | 6.0% | $4,736.64 | $18,737 |
| Prince Edward Island | $6,000 | $972 | 5.0% | $5,028.28 | $19,028 |
| Northwest Territories | $6,000 | $603 | 3.0% | $5,396.96 | $19,397 |
| Yukon | $6,000 | $724 | 4.0% | $5,276.21 | $19,276 |
| Nunavut | $6,000 | $510 | 3.0% | $5,489.64 | $19,490 |
With Other Income (Ontario 2026)
What a $20,000 withdrawal actually costs when stacked on top of your existing income. Effective rate rises as your marginal rate climbs.
Other income: $0
$851
4.0% effective
Withheld $6,000 → refund $5,149
Other income: $30,000
$3,810
19.0% effective
Withheld $6,000 → refund $2,190
Other income: $60,000
$5,930
30.0% effective
Withheld $6,000 → refund $70
Other income: $100,000
$6,338
32.0% effective
Withheld $6,000 → owe $338
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 $20,000 RRSP withdrawal?
CRA withholds $6,000 at source outside Quebec (30%), or $5,800 (29%) in Quebec. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $851 (4.0% effective).
How much is withheld on a $20,000 RRSP withdrawal?
CRA withholds $6,000 (30%) outside Quebec or $5,800 (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 $20,000 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 $20,000 withdrawal reduce tax?
Splitting $20,000 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.