The 2025 RRSP limit is 18% of your 2024 earned income, up to $32,490. Calculate yours in seconds and learn what you need to know before the deadline.
Contributions made by March 3, 2025 can be deducted on your 2024 tax return. Don't miss it!
Your estimated 2025 RRSP contribution limit:
*The exact amount is on your 2024 Notice of Assessment from the CRA. Always verify before contributing.
| Tax Year | RRSP Dollar Limit | % of Earned Income |
|---|---|---|
| 2020 | $27,230 | 18% |
| 2021 | $27,830 | 18% |
| 2022 | $29,210 | 18% |
| 2023 | $30,780 | 18% |
| 2024 | $31,560 | 18% |
| 2025 | $32,490 | 18% |
Your limit is 18% of the prior year's earned income, up to the dollar cap. Any unused room carries forward indefinitely.
Every dollar you contribute to an RRSP reduces your taxable income for that year. If you're in the 40% marginal tax bracket and contribute $100, you save $4,000 in income taxes — an instant 40% return on your contribution.
Investments inside your RRSP grow completely tax-free until withdrawal. Dividends, interest, and capital gains are not taxed annually — only when you take money out in retirement, when you'll typically be in a lower tax bracket.
Withdrawals from an RRSP are added to your income in the year you withdraw them and taxed at your marginal rate. Your RRSP must be converted to a RRIF (Registered Retirement Income Fund) or annuity by December 31 of the year you turn 71.
Home Buyers' Plan (HBP): First-time home buyers can withdraw up to $60,000 from their RRSP tax-free (as of 2024 Budget) to buy or build a qualifying home. The withdrawal must be repaid to the RRSP over 15 years.