CA Tax Tools

Tax on a $8,000 RRSP Withdrawal (2026)

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 $5,00010%19% (5% + 14%)
$5,001 – $15,00020%24% (10% + 14%)
Over $15,00030%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 ~$16,129 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.

Other income: $0

$0

0.0% effective

Withheld $1,600 → refund $1,600

Other income: $30,000

$1,524

19.0% effective

Withheld $1,600 → refund $76

Other income: $60,000

$2,372

30.0% effective

Withheld $1,600 → owe $772

Other income: $100,000

$2,376

30.0% effective

Withheld $1,600 → owe $776

Run the numbers with your exact province, other income, and year: Open RRSP Withdrawal Tax Calculator →

Tax on Other RRSP Withdrawal Amounts

RRSP Withdrawal Tax by Province

Related Calculators

Frequently asked questions

How much tax do you pay on a $8,000 RRSP withdrawal?

CRA withholds $1,600 at source outside Quebec (20%), or $1,920 (24%) in Quebec. At filing you settle up at your marginal rate. With no other income in Ontario 2026, actual tax is $0 (0.0% effective).

How much is withheld on a $8,000 RRSP withdrawal?

CRA withholds $1,600 (20%) outside Quebec or $1,920 (24%) combined federal + provincial in Quebec. Tiers: 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 — fully added to your taxable income for the year and taxed at your combined federal + provincial marginal rate. The 20% withholding is a deposit, not the final bill.

Does splitting a $8,000 withdrawal reduce tax?

Splitting $8,000 into several ≤$5,000 withdrawals drops each withholding to 10% (19% in Quebec) — but final tax at filing is identical regardless of splits. Only your cash flow before filing changes. Note: CRA can apply higher withholding if withdrawals are clearly coordinated to game the tiers.

Last updated May 1, 2026Tax year 2026

Data sources: CRA (canada.ca)

This tool is general information only, not financial advice.

Reviewed by CA Tax Tools Editorial Desk

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