RRSP Withholding Tax Rates
Quick-reference table for the withholding tax withheld at source on an RRSP withdrawal, outside and inside Quebec. For a full calculation against your own income and province, use the RRSP withdrawal tax calculator.
| Withdrawal amount | Outside Quebec | Quebec (combined) | Quebec split |
|---|---|---|---|
| Up to $5,000 | 10% | 19% | 5% federal + 14% provincial |
| $5,001 – $15,000 | 20% | 24% | 10% federal + 14% provincial |
| Over $15,000 | 30% | 29% | 15% federal + 14% provincial |
Rates apply per withdrawal, not cumulatively across the year. Non-residents face a flat 25% withholding regardless of amount, unless reduced by a tax treaty.
Withholding is not your final tax
The percentage withheld at the time of withdrawal is a prepayment toward the tax you actually owe — it is calculated on the withdrawal alone, with no knowledge of your other income, deductions or credits for the year. The full withdrawal is added to your income and taxed at your marginal rate when you file. If your marginal rate is higher than the withholding rate, expect a balance owing; if it's lower, expect a refund of the difference.
Grossing up to a target net amount
To receive a specific amount in hand after withholding, divide the target by (1 − the tier's rate): gross = net ÷ (1 − rate).
Example (outside Quebec): Want $12,000 in hand at the 20% tier. Gross = $12,000 ÷ 0.80 = $15,000. Withholding = 20% × $15,000 = $3,000, leaving $12,000 net.
Example (Quebec): Want $8,000 in hand at the combined 24% tier. Gross = $8,000 ÷ 0.76 ≈ $10,526. Withholding = 24% × $10,526 ≈ $2,526, leaving roughly $8,000 net.
Always check that the resulting gross amount still falls inside the tier you assumed — if it crosses a threshold, recompute using the next tier's rate.
Frequently asked questions
What are the RRSP withholding tax rates in Canada?
Outside Quebec: 10% on withdrawals up to $5,000, 20% on $5,001–$15,000, and 30% on anything over $15,000. In Quebec, the federal component is halved to 5%/10%/15% at the same thresholds, and Revenu Québec adds a flat 14% provincial withholding on top of every single payment — giving combined Quebec rates of 19%, 24% and 29%.
Is RRSP withholding tax the same as my final tax bill?
No. Withholding is a prepayment collected at the moment of withdrawal, calculated in isolation from your other income. Your actual tax is calculated when you file your T1, using your full income for the year and your marginal rate. Depending on your total income, you may owe more than was withheld, or get some of it back as a refund.
How do I gross up a withdrawal to net a target amount?
Divide the amount you want in hand by (1 minus the withholding rate for that tier): gross = net ÷ (1 − rate). For example, to net $12,000 outside Quebec at the 20% tier, gross = $12,000 ÷ 0.80 = $15,000 — the bank withholds 20% × $15,000 = $3,000, leaving $12,000. Check that the resulting gross amount still falls in the tier you assumed; if it crosses into the next tier, recompute using that tier's rate instead.
Do the tiers apply per withdrawal or per year?
Per withdrawal transaction, not cumulatively across the year. Several separate withdrawals of $5,000 or less each attract only the lowest tier, while a single withdrawal just over $15,000 attracts the top tier on the whole amount. Financial institutions are not required to track your other withdrawals elsewhere when calculating withholding.
Sources
Related Insight
RRSP Withholding Tax Rates by Province
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