Withdraw $35,000 from your RRSP in 2026 and CRA withholds $10,500 immediately (30%) — or $10,150 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$10,500
30% of $35,000 — you receive $24,500 cash
Withheld at source (Quebec)
$10,150
29% combined fed + QC — you receive $24,850 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
$10,500
$4,008
11.5%
$6,491.72
$30,992
British Columbia
$10,500
$3,462
9.9%
$7,037.67
$31,538
Alberta
$10,500
$3,575
10.2%
$6,924.80
$31,425
Quebec
$10,150
$4,415
12.6%
$5,735.02
$30,585
Manitoba
$10,500
$4,672
13.3%
$5,827.52
$30,328
Saskatchewan
$10,500
$4,132
11.8%
$6,368.28
$30,868
Nova Scotia
$10,500
$4,871
13.9%
$5,628.89
$30,129
New Brunswick
$10,500
$4,602
13.1%
$5,897.70
$30,398
Newfoundland and Labrador
$10,500
$4,503
12.9%
$5,997.46
$30,497
Prince Edward Island
$10,500
$4,539
13.0%
$5,960.72
$30,461
Northwest Territories
$10,500
$3,588
10.3%
$6,911.96
$31,412
Yukon
$10,500
$3,784
10.8%
$6,716.21
$31,216
Nunavut
$10,500
$3,210
9.2%
$7,289.64
$31,790
With Other Income (Ontario 2026)
What a $35,000 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 $35,000 RRSP withdrawal?
CRA withholds 30% at source outside Quebec (29% in Quebec) — that's $10,500 on $35,000. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $4,008 (11.5% effective) and you get a refund of $6,492.
How much is withheld on a $35,000 RRSP withdrawal?
CRA withholding tax on $35,000: $10,500 (30%) in every province except Quebec, and $10,150 (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 $35,000 RRSP withdrawal taxable income?
Yes. The full $35,000 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 $35,000 withdrawal?
Yes — withholding tiers apply per withdrawal, so splitting $35,000 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.
