Withdraw $8,000 from your RRSP in 2026 and CRA withholds $1,600 immediately (20%) — or $1,920 (24%) if you're in Quebec. Your final tax bill depends on your marginal rate (other income + province).
Withheld at source (outside Quebec)
$1,600
20% of $8,000 — you receive $6,400 cash
Withheld at source (Quebec)
$1,920
24% combined fed + QC — you receive $6,080 cash
CRA Withholding Tiers (why 20%?)
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
$1,600
$0
0.0%
$1,600.00
$8,000
British Columbia
$1,600
$0
0.0%
$1,600.00
$8,000
Alberta
$1,600
$0
0.0%
$1,600.00
$8,000
Quebec
$1,920
$0
0.0%
$1,920.00
$8,000
Manitoba
$1,600
$0
0.0%
$1,600.00
$8,000
Saskatchewan
$1,600
$0
0.0%
$1,600.00
$8,000
Nova Scotia
$1,600
$0
0.0%
$1,600.00
$8,000
New Brunswick
$1,600
$0
0.0%
$1,600.00
$8,000
Newfoundland and Labrador
$1,600
$0
0.0%
$1,600.00
$8,000
Prince Edward Island
$1,600
$0
0.0%
$1,600.00
$8,000
Northwest Territories
$1,600
$0
0.0%
$1,600.00
$8,000
Yukon
$1,600
$0
0.0%
$1,600.00
$8,000
Nunavut
$1,600
$0
0.0%
$1,600.00
$8,000
With Other Income (Ontario 2026)
What a $8,000 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 $8,000 RRSP withdrawal?
CRA withholds 20% at source outside Quebec (24% in Quebec) — that's $1,600 on $8,000. 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 $1,600.
How much is withheld on a $8,000 RRSP withdrawal?
CRA withholding tax on $8,000: $1,600 (20%) in every province except Quebec, and $1,920 (24%) 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 $8,000 RRSP withdrawal taxable income?
Yes. The full $8,000 is added to your taxable income for the year and taxed at your combined federal + provincial marginal rate. The 20% 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 $8,000 withdrawal?
Yes — withholding tiers apply per withdrawal, so splitting $8,000 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.
