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 ~$16,452 federally.
Province
Withheld
Actual tax
Effective rate
Refund / (Owing)
Net in hand
Ontario
$90,000
$115,923
38.6%
($25,922.78)
$184,077
British Columbia
$90,000
$108,504
36.2%
($18,503.75)
$191,496
Alberta
$90,000
$102,450
34.2%
($12,450.05)
$197,550
Quebec
$87,000
$123,333
41.1%
($36,332.67)
$176,667
Manitoba
$90,000
$116,681
38.9%
($26,681.37)
$183,319
Saskatchewan
$90,000
$108,053
36.0%
($18,053.24)
$191,947
Nova Scotia
$90,000
$123,568
41.2%
($33,567.73)
$176,432
New Brunswick
$90,000
$116,830
38.9%
($26,829.80)
$183,170
Newfoundland and Labrador
$90,000
$117,897
39.3%
($27,897.34)
$182,103
Prince Edward Island
$90,000
$121,011
40.3%
($31,010.83)
$178,989
Northwest Territories
$90,000
$103,541
34.5%
($13,540.50)
$196,460
Yukon
$90,000
$101,158
33.7%
($11,158.12)
$198,842
Nunavut
$90,000
$96,172
32.1%
($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.
How much tax do you pay on a $300,000 RRSP withdrawal?
CRA withholds 30% at source outside Quebec (29% in Quebec) — that's $90,000 on $300,000. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $115,923 (38.6% effective) and you owe an extra $25,923.
How much is withheld on a $300,000 RRSP withdrawal?
CRA withholding tax on $300,000: $90,000 (30%) in every province except Quebec, and $87,000 (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 $300,000 RRSP withdrawal taxable income?
Yes. The full $300,000 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 $300,000 withdrawal?
Yes — withholding tiers apply per withdrawal, so splitting $300,000 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.
