Tax on a $25,000 RRSP Withdrawal (2026)
Withdraw $25,000 from your RRSP in 2026 and CRA withholds $7,500 immediately (30%) — or $7,250 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$7,500
30% of $25,000 — you receive $17,500 cash
Withheld at source (Quebec)
$7,250
29% combined fed + QC — you receive $17,750 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 | $7,500 | $1,803 | 7.0% | $5,696.72 | $23,197 |
| British Columbia | $7,500 | $1,857 | 7.0% | $5,643.38 | $23,143 |
| Alberta | $7,500 | $1,375 | 6.0% | $6,124.80 | $23,625 |
| Quebec | $7,250 | $1,846 | 7.0% | $5,404.02 | $23,154 |
| Manitoba | $7,500 | $2,192 | 9.0% | $5,307.52 | $22,808 |
| Saskatchewan | $7,500 | $1,682 | 7.0% | $5,818.29 | $23,318 |
| Nova Scotia | $7,500 | $2,345 | 9.0% | $5,154.60 | $22,655 |
| New Brunswick | $7,500 | $2,262 | 9.0% | $5,237.70 | $22,738 |
| Newfoundland and Labrador | $7,500 | $2,398 | 10.0% | $5,101.64 | $22,602 |
| Prince Edward Island | $7,500 | $2,147 | 9.0% | $5,353.28 | $22,853 |
| Northwest Territories | $7,500 | $1,598 | 6.0% | $5,901.96 | $23,402 |
| Yukon | $7,500 | $1,744 | 7.0% | $5,756.21 | $23,256 |
| Nunavut | $7,500 | $1,410 | 6.0% | $6,089.64 | $23,590 |
With Other Income (Ontario 2026)
What a $25,000 withdrawal actually costs when stacked on top of your existing income. Effective rate rises as your marginal rate climbs.
Other income: $0
$1,803
7.0% effective
Withheld $7,500 → refund $5,697
Other income: $30,000
$4,808
19.0% effective
Withheld $7,500 → refund $2,692
Other income: $60,000
$7,413
30.0% effective
Withheld $7,500 → refund $88
Other income: $100,000
$8,196
33.0% effective
Withheld $7,500 → owe $696
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 $25,000 RRSP withdrawal?
CRA withholds $7,500 at source outside Quebec (30%), or $7,250 (29%) in Quebec. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $1,803 (7.0% effective).
How much is withheld on a $25,000 RRSP withdrawal?
CRA withholds $7,500 (30%) outside Quebec or $7,250 (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 $25,000 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 $25,000 withdrawal reduce tax?
Splitting $25,000 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.