Calculate your 2026 RRSP contribution room based on earned income
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Claim $100 Bonus →RRSP earned income includes: employment income, self-employment net income, rental income, alimony received, and royalties. It does NOT include: investment income (dividends, interest, capital gains), pension income, CPP/OAS, or RRSP withdrawals. Your T1 line 15000 minus non-qualifying income gives earned income.
The 2026 RRSP contribution limit (on 2025 earned income) is $32,490 — an increase from $31,560 in 2025. To reach this maximum, you need 2025 earned income of at least $180,500. Below that, your room is 18% of your earned income.
Unlike TFSAs (which track by calendar year), unused RRSP room accumulates indefinitely from age 18 onwards. If you had low income years, started contributing late, or simply chose not to contribute, all that room is still available. The easiest way to find your current room is through CRA My Account — look for "RRSP/PRPP deduction limit."
If your employer has a registered pension plan (RPP) or deferred profit sharing plan (DPSP), CRA reduces your RRSP room by a "pension adjustment" amount. This reflects the benefit being built in your workplace pension. The PA appears in box 52 of your T4 slip.
There's a $2,000 lifetime grace amount for over-contributions, but exceeding your limit by more than $2,000 triggers a 1% per month penalty tax on the excess. CRA will send a letter and T1-OVP return must be filed. Always verify your limit in CRA My Account before contributing.
To deduct contributions on your 2025 tax return, you must contribute by March 1, 2026 (60 days into 2026). Contributions made January 1–March 1, 2026 can be deducted on either your 2025 or 2026 return, giving you flexibility.