Withdraw $200,000 from your RRSP in 2026 and CRA withholds $60,000 immediately (30%) — or $58,000 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$60,000
30% of $200,000 — you receive $140,000 cash
Withheld at source (Quebec)
$58,000
29% combined fed + QC — you receive $142,000 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
$60,000
$64,722
32.4%
($4,721.98)
$135,278
British Columbia
$60,000
$59,596
29.8%
$404.28
$140,404
Alberta
$60,000
$58,085
29.0%
$1,915.02
$141,915
Quebec
$58,000
$71,837
35.9%
($13,836.95)
$128,163
Manitoba
$60,000
$67,596
33.8%
($7,596.05)
$132,404
Saskatchewan
$60,000
$62,720
31.4%
($2,720.05)
$137,280
Nova Scotia
$60,000
$71,735
35.9%
($11,734.53)
$128,265
New Brunswick
$60,000
$66,497
33.2%
($6,496.60)
$133,503
Newfoundland and Labrador
$60,000
$67,584
33.8%
($7,584.13)
$132,416
Prince Edward Island
$60,000
$70,178
35.1%
($10,177.63)
$129,822
Northwest Territories
$60,000
$58,657
29.3%
$1,342.70
$141,343
Yukon
$60,000
$57,446
28.7%
$2,553.93
$142,554
Nunavut
$60,000
$53,838
26.9%
$6,161.61
$146,162
With Other Income (Ontario 2026)
What a $200,000 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 $200,000 RRSP withdrawal?
CRA withholds 30% at source outside Quebec (29% in Quebec) — that's $60,000 on $200,000. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $64,722 (32.4% effective) and you owe an extra $4,722.
How much is withheld on a $200,000 RRSP withdrawal?
CRA withholding tax on $200,000: $60,000 (30%) in every province except Quebec, and $58,000 (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 $200,000 RRSP withdrawal taxable income?
Yes. The full $200,000 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 $200,000 withdrawal?
Yes — withholding tiers apply per withdrawal, so splitting $200,000 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.
