FinviloRRSP tax refund calculator
An RRSP contribution is deducted from your taxable income, so the tax saved is roughly the contribution times your marginal tax rate.
Federal plus provincial rate on your last dollar of income. Find yours on your province's tax tables or the CRA site.
Estimated tax saved
$1,500.00
Real cost of the contribution after tax savings: $3,500.00
Formula and assumptions
Tax saved = contribution × marginal tax rate. Your actual refund also depends on tax already withheld from your pay.
If a large contribution drops you into a lower bracket, part of it saves tax at the lower rate, so this overstates the saving. Contributions must fit within your RRSP deduction limit shown on your CRA notice of assessment. Withdrawals are taxed as income later.