Withdraw $60,000 from your RRSP in 2026 and CRA withholds $18,000 immediately (30%) — or $17,400 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$18,000
30% of $60,000 — you receive $42,000 cash
Withheld at source (Quebec)
$17,400
29% combined fed + QC — you receive $42,600 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
$18,000
$9,417
15.7%
$8,582.75
$50,583
British Columbia
$18,000
$9,015
15.0%
$8,984.99
$50,985
Alberta
$18,000
$9,171
15.3%
$8,828.79
$50,829
Quebec
$17,400
$11,200
18.7%
$6,199.60
$48,800
Manitoba
$18,000
$11,222
18.7%
$6,778.01
$48,778
Saskatchewan
$18,000
$10,462
17.4%
$7,537.92
$49,538
Nova Scotia
$18,000
$12,205
20.3%
$5,795.38
$47,795
New Brunswick
$18,000
$10,901
18.2%
$7,099.00
$49,099
Newfoundland and Labrador
$18,000
$11,162
18.6%
$6,837.77
$48,838
Prince Edward Island
$18,000
$11,503
19.2%
$6,497.21
$48,497
Northwest Territories
$18,000
$8,848
14.7%
$9,152.03
$51,152
Yukon
$18,000
$9,018
15.0%
$8,981.80
$50,982
Nunavut
$18,000
$7,932
13.2%
$10,067.66
$52,068
With Other Income (Ontario 2026)
What a $60,000 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 $60,000 RRSP withdrawal?
CRA withholds 30% at source outside Quebec (29% in Quebec) — that's $18,000 on $60,000. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $9,417 (15.7% effective) and you get a refund of $8,583.
How much is withheld on a $60,000 RRSP withdrawal?
CRA withholding tax on $60,000: $18,000 (30%) in every province except Quebec, and $17,400 (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 $60,000 RRSP withdrawal taxable income?
Yes. The full $60,000 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 $60,000 withdrawal?
Yes — withholding tiers apply per withdrawal, so splitting $60,000 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.
