RRSP Contribution & Tax-Saving Calculator

Find your RRSP deduction limit and estimate the income-tax refund a planned contribution is likely to generate.

Tax data last reviewed: 2026-06-26. Current tax year on file: 2026. Figures are sourced from canada.ca (CRA) and provincial finance ministries and are kept current by BOMCAS Canada.

A Registered Retirement Savings Plan does two jobs: it shelters investment growth from tax, and it lowers your taxable income in the year you contribute. This calculator estimates your annual RRSP deduction limit (18% of earned income, up to the year's dollar cap) and shows the tax saving a contribution should produce by comparing your tax before and after the deduction.

It is the fastest way to decide how much to contribute before the RRSP deadline to hit a target refund.

How it works

Understanding the numbers

Your deduction limit

New room each year is 18% of your prior-year earned income, capped at the annual dollar limit. The calculator shows both figures and uses the lower one. Unused room from past years carries forward and adds to this — check your CRA Notice of Assessment for the exact total.

How the saving is estimated

The tool computes your tax at full income, then again with the contribution deducted, and reports the difference as your estimated refund. The higher your marginal rate, the larger the saving per dollar contributed.

Timing

Contributions made in the first 60 days of the year can be applied to either year. We can help you decide which gives the better result.

Need this done for you? BOMCAS Canada prepares returns and provides tax planning for individuals and businesses in Sherwood Park, Edmonton and across Alberta. Call 780-667-5250 or email info@bomcas.ca.

Guide

RRSP contribution and tax-refund calculator for Alberta taxpayers

How an RRSP cuts your Alberta tax bill

A Registered Retirement Savings Plan does two jobs at once: it shelters investment growth from tax, and it reduces your taxable income in the year you contribute. For Alberta taxpayers, the refund a contribution generates depends on your marginal rate — and because Alberta's brackets stack on the federal brackets, higher earners in Sherwood Park and Edmonton can see a substantial portion of each contributed dollar come back as a refund.

This calculator estimates your annual RRSP deduction limit (18% of earned income, up to the year's dollar cap) and the refund a planned contribution should produce, by computing your tax before and after the deduction. It is the quickest way to decide how much to contribute before the deadline to reach a target refund.

Contribution room and the deadline

New RRSP room each year is 18% of your prior-year earned income, capped at the annual dollar limit, plus any unused room carried forward from previous years. Your exact available room — including carry-forward — appears on your CRA Notice of Assessment, and the calculator estimates the current-year portion for you. Contributions made in the first 60 days of the year can be applied to either the previous or current year, which opens useful planning options we walk clients through each February.

RRSP, TFSA, or both

Whether to prioritise an RRSP or a TFSA depends on your income now versus the income you expect in retirement. RRSPs give an immediate deduction and defer tax to a (hopefully lower) future rate; TFSAs offer tax-free growth and withdrawals with no up-front deduction. For many Alberta households the right answer is a deliberate mix, and we help clients set the balance based on their full financial picture rather than a rule of thumb.

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Step by step

How to use the rrsp contribution & tax-saving calculator

To estimate your RRSP room and refund:

Enter your prior-year earned incomeThis sets your new contribution room for the year.
Add your planned contribution, province and yearAlberta is the default; the province sets the marginal rate used for the refund.
Review your limit and estimated refundSee your deduction limit and the income-tax refund the contribution is likely to generate.

Answers

Frequently Asked Questions

Your limit is 18% of last year's earned income up to the annual dollar cap, plus any unused room carried forward. The calculator estimates the current-year room; your CRA Notice of Assessment shows your exact available room including carry-forward.

Roughly your marginal tax rate times the contribution. An Alberta resident at a 36% marginal rate who contributes $10,000 could see about $3,600 back. Enter your numbers above for an estimate based on your income and province.

Contributions for a tax year can be made up to 60 days into the following calendar year (usually around March 1). After that, contributions count toward the next year.

It depends on your income now versus in retirement. RRSPs give an immediate deduction and defer tax; TFSAs give tax-free growth with no deduction. BOMCAS Canada can help you choose the right mix.

Roughly your marginal rate multiplied by the contribution. An Alberta resident at a 36% marginal rate who contributes $10,000 could see about $3,600 back. Enter your own figures for an estimate based on your income and province.

Contributions for a tax year can be made up to 60 days into the following calendar year, usually around the start of March. Contributions after that date count toward the next tax year.

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These calculators provide estimates for general information only and do not constitute tax, accounting, or financial advice. Figures are based on published federal and provincial/territorial rates and are updated periodically. For advice specific to your situation, contact BOMCAS Canada. These calculators provide good-faith estimates for planning only and do not constitute tax advice or a filing. For advice specific to your situation, contact BOMCAS Canada at 780-667-5250 or info@bomcas.ca.

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