A Registered Retirement Savings Plan (RRSP) is an investment plan for retirement purposes, and is registered with the government. You can contribute to your RRSP account up to a limit every year, and you can invest your money into stocks and mutual funds. Learn more about how to calculate RRSP contribution and how to use our RRSP calculator.
RRSP Limits
The RRSP contribution limit in 2024 is $31,560 or 18% of last year’s income, whichever is less, plus any unused contribution room from previous years. The contributions are deductible from the taxable income, therefore, contributing to the RRSP can significantly increase your tax refund. Contributing appropriately to the RRSP can significantly increase your tax refund.
Using an RRSP contribution calculator allows you to ensure that you’re utilizing your contributions as effectively as possible. If you don’t contribute the maximum allowable amount to your RRSP in any given year, you can carry forward your contribution room to future years, so you can contribute later.
Our RRSP calculator estimates your contribution limit and calculates how much tax refund you can expect, so it is a perfect tool for tax planning purposes. However, it doesn’t calculate with the unused contribution room from previous years.
Usage of the RRSP Calculator
- Select the province: You can choose all the Canadian provinces or territories from the list.
- Enter your salary: This is required to calculate your tax refund.
- Enter your previous year’s salary: This is required to calculate the limit of the deductible contributions.
