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RRSP Withdrawal Tax in Prince Edward Island (2026)

CRA withholds 10% / 20% / 30% at source for withdrawals up to $5,000 / $5,001–$15,000 / over $15,000 — federal only (no provincial withholding outside Quebec). Final tax at filing depends on your Prince Edward Island marginal rate (other income + brackets).

Withholding at Source (Prince Edward Island)

Withdrawal amount Federal (CRA) Total withheld
Up to $5,000 10% 10%
$5,001 – $15,000 20% 20%
Over $15,000 30% 30%

Source: CRA S3-F10-C3 and Regulation 103. Withholding is a prepayment — your final tax at filing is your combined federal + Prince Edward Island marginal rate.

Tax on Every RRSP Withdrawal Amount (Prince Edward Island, 2026)

Assumes RRSP withdrawal is your only income — e.g. retiree with no employment or CPP/OAS yet. 2026 basic personal amount shelters the first ~$16,129 federally.

Withdrawal Withheld Actual tax Effective rate Refund / (Owing) Net in hand
$300 $30 $0 0.0% $30.00 $300
$1,000 $100 $0 0.0% $100.00 $1,000
$2,000 $200 $0 0.0% $200.00 $2,000
$3,000 $300 $0 0.0% $300.00 $3,000
$4,500 $450 $0 0.0% $450.00 $4,500
$5,000 $500 $0 0.0% $500.00 $5,000
$8,000 $1,600 $0 0.0% $1,600.00 $8,000
$10,000 $2,000 $0 0.0% $2,000.00 $10,000
$15,000 $3,000 $0 0.0% $3,000.00 $15,000
$20,000 $6,000 $972 5.0% $5,028.28 $19,028
$25,000 $7,500 $2,147 9.0% $5,353.28 $22,853
$30,000 $9,000 $3,322 11.0% $5,678.28 $26,678
$35,000 $10,500 $4,539 13.0% $5,960.72 $30,461
$40,000 $12,000 $5,913 15.0% $6,087.22 $34,087
$50,000 $15,000 $8,660 17.0% $6,340.22 $41,340
$60,000 $18,000 $11,503 19.0% $6,497.21 $48,497
$70,000 $21,000 $15,031 21.0% $5,969.38 $54,969
$75,000 $22,500 $16,886 23.0% $5,614.38 $58,114
$100,000 $30,000 $26,161 26.0% $3,839.38 $73,839
$150,000 $45,000 $47,070 31.0% ($2,069.81) $102,930
$200,000 $60,000 $70,127 35.0% ($10,126.61) $129,873
$300,000 $90,000 $119,787 40.0% ($29,787.33) $180,213

$20,000 Withdrawal on Top of Other Income (Prince Edward Island 2026)

What a $20,000 RRSP withdrawal actually costs in Prince Edward Island when stacked on your existing income. Effective rate rises as marginal rate climbs into higher brackets.

Other income: $0

$972

5.0% effective

Withheld $6,000 → refund $5,028

Other income: $30,000

$5,338

27.0% effective

Withheld $6,000 → refund $662

Other income: $60,000

$7,238

36.0% effective

Withheld $6,000 → owe $1,238

Other income: $100,000

$7,716

39.0% effective

Withheld $6,000 → owe $1,716

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

RRSP Withdrawal Tax in Other Provinces

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Frequently asked questions

How much withholding tax is deducted on an RRSP withdrawal in Prince Edward Island?

In Prince Edward Island, CRA withholds federal-only at source: 10% on withdrawals up to $5,000, 20% on $5,001–$15,000, and 30% above $15,000. No provincial withholding applies — your provincial tax is settled at filing.

What is the final tax rate on an RRSP withdrawal in Prince Edward Island?

The final tax equals your combined federal + Prince Edward Island marginal rate times the withdrawal. With no other income in 2026, a $20,000 withdrawal actually costs $972 (5.0% effective). At $60,000 other income it climbs to $7,238 (36.0%).

Is RRSP withdrawal taxable income in Prince Edward Island?

Yes — fully added to your taxable income for the year and taxed at your combined federal + Prince Edward Island marginal rate. The withholding is a deposit, not the final bill.

Does Prince Edward Island have its own RRSP withholding?

No. Prince Edward Island does not have a separate withholding — only CRA withholds federally (10% / 20% / 30%). Your Prince Edward Island provincial tax is calculated and settled when you file your T1 return. Quebec is the only province with a combined federal + provincial withholding.

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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