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RRSP Contribution Room Calculator

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Enter your prior-year earned income to calculate your new 2026 RRSP contribution room.

RRSP Contribution Room Calculator

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Total 2026 RRSP room
$15,300.00
New room earned (18% of income)
$15,300.00
Uses the 2026 annual dollar limit of CAD 33,810. Your exact room is always confirmed on your CRA Notice of Assessment or CRA My Account - this is an estimate based on the standard formula.

The formula

New room = min(18% x Prior year earned income, CAD 33,810) Total room = New room - Pension Adjustment + Unused room carried forward
Example

CAD 85,000 earned in 2025: new 2026 room = 18% x 85,000 = CAD 15,300. With a CAD 3,600 pension adjustment from a workplace plan, net new room drops to CAD 11,700.

Step-by-step guide

  1. Enter your 2025 earned income - employment income, self-employment income, and net rental income count; investment income, capital gains, and pension income do not.
  2. Enter your Pension Adjustment (Box 52 of your T4) if you belong to a workplace pension or deferred profit-sharing plan.
  3. Add any unused room carried forward from prior years (found on your CRA Notice of Assessment), and read your total available 2026 room.

Why unused room never expires

Unlike a "use it or lose it" benefit, RRSP contribution room accumulates indefinitely if you don't use it - a common situation for anyone who couldn't afford to contribute much early in their career. Someone earning a modest income in their 20s who couldn't max out their RRSP might accumulate substantial unused room by their 40s, when a higher income and different priorities make larger contributions more feasible. This carry-forward feature is one of the RRSP system's most underused aspects, since it means a strong income year later in life can still be used to catch up on years when contributing wasn't realistic.

Common mistakes

Including investment income, capital gains, or pension income as "earned income" - only employment, self-employment, and net rental income generate new RRSP room.
Trusting an estimate over your actual CRA Notice of Assessment - this calculator uses the standard formula, but your official "RRSP deduction limit" on your NOA is the authoritative figure, especially if you've had irregular income or prior over-contributions.

Frequently asked questions

What counts as "earned income" for RRSP purposes?

Employment income, self-employment income (net), net rental income, and certain research grants or disability payments. It excludes investment income, capital gains, RRSP withdrawals, and pension or CPP/OAS income.

What happens if I over-contribute to my RRSP?

The CRA allows a small lifetime cumulative buffer (typically CAD 2,000) before penalties apply. Exceeding your room by more than that buffer can trigger a 1% per month penalty tax on the excess amount until it's withdrawn or absorbed by new room.

Why does a workplace pension reduce my RRSP room?

The Pension Adjustment exists to prevent "double-dipping" on tax-sheltered retirement savings - since your employer pension already provides tax-advantaged retirement savings, your RRSP room is reduced to keep the total tax-sheltered savings roughly consistent with someone who doesn't have a workplace pension.

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