Tax on a $300,000 RRSP Withdrawal (2026)
Withdraw $300,000 from your RRSP in 2026 and CRA withholds $90,000 immediately (30%) — or $87,000 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$90,000
30% of $300,000 — you receive $210,000 cash
Withheld at source (Quebec)
$87,000
29% combined fed + QC — you receive $213,000 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 ~$16,129 federally.
| Province | Withheld | Actual tax | Effective rate | Refund / (Owing) | Net in hand |
|---|---|---|---|---|---|
| Ontario | $90,000 | $115,923 | 39.0% | ($25,922.78) | $184,077 |
| British Columbia | $90,000 | $108,504 | 36.0% | ($18,503.75) | $191,496 |
| Alberta | $90,000 | $102,450 | 34.0% | ($12,450.05) | $197,550 |
| Quebec | $87,000 | $123,333 | 41.0% | ($36,332.67) | $176,667 |
| Manitoba | $90,000 | $115,829 | 39.0% | ($25,829.25) | $184,171 |
| Saskatchewan | $90,000 | $108,053 | 36.0% | ($18,053.24) | $191,947 |
| Nova Scotia | $90,000 | $123,568 | 41.0% | ($33,567.73) | $176,432 |
| New Brunswick | $90,000 | $116,830 | 39.0% | ($26,829.80) | $183,170 |
| Newfoundland and Labrador | $90,000 | $117,897 | 39.0% | ($27,897.34) | $182,103 |
| Prince Edward Island | $90,000 | $121,015 | 40.0% | ($31,014.55) | $178,985 |
| Northwest Territories | $90,000 | $103,541 | 35.0% | ($13,540.50) | $196,460 |
| Yukon | $90,000 | $101,054 | 34.0% | ($11,054.25) | $198,946 |
| Nunavut | $90,000 | $96,172 | 32.0% | ($6,171.59) | $203,828 |
With Other Income (Ontario 2026)
What a $300,000 withdrawal actually costs when stacked on top of your existing income. Effective rate rises as your marginal rate climbs.
Other income: $0
$115,923
39.0% effective
Withheld $90,000 → owe $25,923
Other income: $30,000
$128,926
43.0% effective
Withheld $90,000 → owe $38,926
Other income: $60,000
$138,623
46.0% effective
Withheld $90,000 → owe $48,623
Other income: $100,000
$147,932
49.0% effective
Withheld $90,000 → owe $57,932
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 $300,000 RRSP withdrawal?
CRA withholds $90,000 at source outside Quebec (30%), or $87,000 (29%) in Quebec. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $115,923 (39.0% effective).
How much is withheld on a $300,000 RRSP withdrawal?
CRA withholds $90,000 (30%) outside Quebec or $87,000 (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 $300,000 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 $300,000 withdrawal reduce tax?
Splitting $300,000 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.