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Tax on a $200,000 RRSP Withdrawal (2026)

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 $5,00010%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 $60,000 $57,800 29.0% $2,199.90 $142,200
British Columbia $60,000 $59,541 30.0% $459.02 $140,459
Alberta $60,000 $58,030 29.0% $1,969.76 $141,970
Quebec $58,000 $71,791 36.0% ($13,791.24) $128,209
Manitoba $60,000 $67,541 34.0% ($7,541.31) $132,459
Saskatchewan $60,000 $62,665 31.0% ($2,665.31) $137,335
Nova Scotia $60,000 $71,680 36.0% ($11,679.79) $128,320
New Brunswick $60,000 $66,442 33.0% ($6,441.86) $133,558
Newfoundland and Labrador $60,000 $67,695 34.0% ($7,695.21) $132,305
Prince Edward Island $60,000 $70,127 35.0% ($10,126.61) $129,873
Northwest Territories $60,000 $58,603 29.0% $1,397.44 $141,397
Yukon $60,000 $57,366 29.0% $2,633.69 $142,634
Nunavut $60,000 $53,784 27.0% $6,216.35 $146,216

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.

Other income: $0

$57,800

29.0% effective

Withheld $60,000 → refund $2,200

Other income: $30,000

$67,492

34.0% effective

Withheld $60,000 → owe $7,492

Other income: $60,000

$74,140

37.0% effective

Withheld $60,000 → owe $14,140

Other income: $100,000

$80,744

40.0% effective

Withheld $60,000 → owe $20,744

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 $200,000 RRSP withdrawal?

CRA withholds $60,000 at source outside Quebec (30%), or $58,000 (29%) in Quebec. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $57,800 (29.0% effective).

How much is withheld on a $200,000 RRSP withdrawal?

CRA withholds $60,000 (30%) outside Quebec or $58,000 (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 $200,000 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 $200,000 withdrawal reduce tax?

Splitting $200,000 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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