Withdraw $4,500 from your RRSP in 2026 and CRA withholds $450 immediately (10%) — or $855 (19%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$450
10% of $4,500 — you receive $4,050 cash
Withheld at source (Quebec)
$855
19% combined fed + QC — you receive $3,645 cash
CRA Withholding Tiers (why 10%?)
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
$450
$0
0.0%
$450.00
$4,500
British Columbia
$450
$0
0.0%
$450.00
$4,500
Alberta
$450
$0
0.0%
$450.00
$4,500
Quebec
$855
$0
0.0%
$855.00
$4,500
Manitoba
$450
$0
0.0%
$450.00
$4,500
Saskatchewan
$450
$0
0.0%
$450.00
$4,500
Nova Scotia
$450
$0
0.0%
$450.00
$4,500
New Brunswick
$450
$0
0.0%
$450.00
$4,500
Newfoundland and Labrador
$450
$0
0.0%
$450.00
$4,500
Prince Edward Island
$450
$0
0.0%
$450.00
$4,500
Northwest Territories
$450
$0
0.0%
$450.00
$4,500
Yukon
$450
$0
0.0%
$450.00
$4,500
Nunavut
$450
$0
0.0%
$450.00
$4,500
With Other Income (Ontario 2026)
What a $4,500 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 $4,500 RRSP withdrawal?
CRA withholds 10% at source outside Quebec (19% in Quebec) — that's $450 on $4,500. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $0 (0.0% effective) and you get a refund of $450.
How much is withheld on a $4,500 RRSP withdrawal?
CRA withholding tax on $4,500: $450 (10%) in every province except Quebec, and $855 (19%) 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 $4,500 RRSP withdrawal taxable income?
Yes. The full $4,500 is added to your taxable income for the year and taxed at your combined federal + provincial marginal rate. The 10% 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 $4,500 withdrawal?
$4,500 is within the ≤$5,000 tier so a single withdrawal already gets the lowest withholding rate (10% outside Quebec, 19% in Quebec). No splitting benefit here.
