RRSP deadline 2026: You have 28 days left to cut your 2025 tax bill

You have until March 2, 2026 to make RRSP contributions that reduce your 2025 tax bill. Miss that deadline and you're stuck with whatever taxes you owe - no second chances.

The catch most people miss: the money has to actually land in your RRSP account by March 2nd. If you write a cheque on deadline day, it might not clear in time. Online transfers from your bank usually process same-day, but confirm before you assume.

How much room do you have

Your 2025 RRSP contribution room is 18% of your 2024 earned income, up to $32,490. If you made $80,000 in 2024, your limit is $14,400. Made $200,000? You hit the $32,490 maximum.

But here's what complicates it: you might have unused room from previous years stacking up. Check your 2024 Notice of Assessment from CRA - it shows your total available room as of the end of 2024. Add 18% of your 2024 income to that number, and that's what you can contribute before March 2nd.

Don't guess at this number. Over-contribute by even $1 and CRA charges you 1% per month on the excess until you withdraw it.

What counts as earned income

Employment income, yes. Self-employment income, yes. Rental income from being a landlord, no. Investment gains, no. Pension payments, depends - some count, some don't.

If you're not sure what your 2024 earned income was, add up your T4 employment income and any T4A self-employment income. That covers most people.

The refund math

Every dollar you put into your RRSP reduces your taxable income by a dollar. At $80,000 income in Ontario, your marginal tax rate is roughly 31.5%. Contribute $10,000 and you'll get back about $3,150 when you file your taxes.

TaxSplit.ca will show you the exact refund for your income and province - the rate changes significantly depending on where you live and how much you made.

The refund isn't free money. When you eventually withdraw from your RRSP, that full amount gets taxed as income. But if you're earning more now than you expect to in retirement, the RRSP lets you shift income from high-tax years to lower-tax years.

Spousal RRSPs count too

If you're married or common-law, you can contribute to a spousal RRSP using your contribution room. The money goes into their account, but you get the tax deduction. This works well if one spouse earns significantly more than the other.

The RRSP contribution limit applies to your total contributions across all accounts - yours and any spousal RRSPs you contribute to.

Don't panic-contribute

The March deadline creates pressure, but don't throw money into an RRSP just because you can. If you're young, earning under $60,000, or expect your income to grow substantially, a TFSA might make more sense even though it doesn't give you a tax deduction now.

The RRSP refund is attractive, but remember: you're borrowing from your future self. That money will get taxed when you withdraw it in retirement.

If you do contribute, make sure you have the cash flow to handle it. Taking on debt to maximize your RRSP contribution rarely makes sense - the interest costs usually outweigh the tax savings.

What happens if you miss it

Nothing dramatic. Your contribution room doesn't disappear - it carries forward to next year. You just can't use it to reduce your 2025 taxes.

If you contributed but missed the deadline, the contribution counts toward your 2026 tax deduction instead.

March 2nd is a hard deadline. CRA doesn't accept "I meant to contribute" or "the transfer was delayed." Money in the account by end of day March 2nd, or it doesn't count for 2025.