| What's This? |
|
Click here to enter "What's This?" mode. In "What's This?" mode, help is available on many of the terms in this calculator by placing the mouse over the term. Click again to turn off "What's This?" mode. |
| Borrowing to Contribute |
|
Note that no tax deduction is available to make your RRSP contribution. However, if funds are short, it may still make economic sense to borrow funds to contribute to your RRSP. In addition to the tax savings shown above, the earnings within the plan may exceed the interest on the loan. Depending how long the funds remain in the RRSP, the investment will continue to grow tax-free, but taxes will have to be paid when the funds are withdrawn. The rate the RRSP earnings are taxes will depend on your marginal tax rate when you withdraw the funds. |
| Province of Residence |
|
Select the province you lived in at the end of the year. Provincial tax rates used in this calculator will be based on the year and province selected. Once selected, you can change the province using the up and down arrow keys. This facilitates comparing rates in various provinces. Note: Results for Quebec may not be accurate if your taxable income on your provincial return is not equal to your taxable income on your federal return. |
| Tax Year |
|
Select the tax year you are interested in. Rates are accurate based on the information available. |
| Taxable Income |
|
Enter your estimated taxable income for the taxation year selected. Tax rates are progressive — which means that the rate increases with your income level. Taxes are based on the taxable income you enter. This calculator assumes that you are eligible for the basic personal amount but does not take into account other credits to which you may be entitled. The calculated RRSP savings will still be accurate except where your credits exceed your taxable income. |
| RRSP Contribution |
|
Enter your proposed RRSP contribution. The calculator assumes that the contribution is deductible. The amount you are eligible to contribute is shown on your Notice of Assessment or Reassessment for the last taxation year. |
| Taxes with no RRSP Contribution |
|
The calculator computes the taxes payable to the federal and provincial/territorial governments based on the income you entered. It assumes you are eligible for the basic personal credit, but no other deductions or credits. Unless your taxes are very low, any other personal credits you are entitled to have no effect on your tax savings. |
| Taxes with Your RRSP Contribution |
|
The calculator computes the taxes payable to the federal and provincial/territorial governments based on the income and RRSP contribution you entered. It assumes you are eligible for the basic personal credit, but no other deductions or credits. Unless your taxes are very low, any other personal credits you are entitled to have no effect on your tax savings. |
| Tax Savings |
|
Your tax savings at the federal and provincial levels (as well as total savings) based on the difference between your estimated taxes payable with no RRSP contribution less your estimated taxes after claiming your RRSP contribution. |
| Return on Investment |
|
The return on your RRSP investment is calculated at the federal and provincial levels by dividing the tax saving by the RRSP investment. |