Withdraw $70,000 from your RRSP in 2026 and CRA withholds $21,000 immediately (30%) — or $20,300 (29%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$21,000
30% of $70,000 — you receive $49,000 cash
Withheld at source (Quebec)
$20,300
29% combined fed + QC — you receive $49,700 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
$21,000
$12,382
17.7%
$8,617.75
$57,618
British Columbia
$21,000
$11,835
16.9%
$9,164.99
$58,165
Alberta
$21,000
$12,197
17.4%
$8,802.79
$57,803
Quebec
$20,300
$14,812
21.2%
$5,487.85
$55,188
Manitoba
$21,000
$14,547
20.8%
$6,453.01
$55,453
Saskatchewan
$21,000
$13,762
19.7%
$7,237.91
$56,238
Nova Scotia
$21,000
$15,887
22.7%
$5,112.63
$54,113
New Brunswick
$21,000
$14,351
20.5%
$6,649.00
$55,649
Newfoundland and Labrador
$21,000
$14,662
20.9%
$6,337.77
$55,338
Prince Edward Island
$21,000
$15,031
21.5%
$5,969.38
$54,969
Northwest Territories
$21,000
$11,758
16.8%
$9,242.03
$58,242
Yukon
$21,000
$11,968
17.1%
$9,031.80
$58,032
Nunavut
$21,000
$10,682
15.3%
$10,317.66
$59,318
With Other Income (Ontario 2026)
What a $70,000 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 $70,000 RRSP withdrawal?
CRA withholds 30% at source outside Quebec (29% in Quebec) — that's $21,000 on $70,000. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $12,382 (17.7% effective) and you get a refund of $8,618.
How much is withheld on a $70,000 RRSP withdrawal?
CRA withholding tax on $70,000: $21,000 (30%) in every province except Quebec, and $20,300 (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 $70,000 RRSP withdrawal taxable income?
Yes. The full $70,000 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 $70,000 withdrawal?
Yes — withholding tiers apply per withdrawal, so splitting $70,000 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.
