Canada · 2026
What an RRSP contribution costs your take-home, 2026
An RRSP contribution of $5,000 comes off taxable income, so it costs less than $5,000 of take-home pay. At $110,000 the real cost is $3,100 in Nova Scotia and $3,625 in Nunavut: the rest is tax you do not pay. CPP and EI are unchanged, because they are charged on the full salary.
Real cost of a $5,000 RRSP, by province
| Province or territory | $40,000 | $70,000 | $110,000 | $200,000 |
|---|---|---|---|---|
| Alberta | $3,900 | $3,475 | $3,475 | $2,885 |
| British Columbia | $3,842 | $3,590 | $3,450 | $2,695 |
| Manitoba | $3,760 | $3,338 | $3,105 | $2,665 |
| New Brunswick | $3,830 | $3,275 | $3,192 | $2,560 |
| Newfoundland and Labrador | $3,865 | $3,250 | $3,185 | $2,645 |
| Nova Scotia | $3,553 | $3,142 | $3,100 | $2,485 |
| Northwest Territories | $4,005 | $3,545 | $3,442 | $2,833 |
| Nunavut | $4,100 | $3,625 | $3,625 | $2,960 |
| Ontario | $3,898 | $3,518 | $3,399 | $2,587 |
| Prince Edward Island | $3,627 | $3,191 | $3,125 | $2,585 |
| Quebec | $3,716 | $3,194 | $3,194 | $2,489 |
| Saskatchewan | $3,775 | $3,350 | $3,350 | $2,810 |
| Yukon | $3,980 | $3,525 | $3,525 | $2,889 |
Take-home pay falls by this much a year. See the marginal rates behind it on the marginal rates page.
Questions
How much does a $5,000 RRSP contribution actually cost?
It depends on your income and province: at $40,000 between $3,553 and $4,100, at $110,000 between $3,100 and $3,625. The table shows each province.
Why does the same contribution cost less at a higher salary?
Because it comes off income taxed at your top rates, so more of it is returned as tax saved. At $200,000 the cost ranges from $2,485 to $2,960.
Does an RRSP change my CPP or EI?
No. CPP contributions are worked on pensionable earnings and EI premiums on insurable earnings, and an RRSP contribution does not reduce either.
Is the money lost?
No: it goes into your RRSP and is taxed when you withdraw it. The table shows what leaves your pay now, not what the money is worth later, and does not model contribution room.
More Canadian guides
Estimates for the 2026 tax year using rates read from the CRA (and Revenu Québec for Quebec) on 2026-10-03. Assumes a resident of one province or territory for the whole year. Not payroll, tax or financial advice.