RRSP contribution room: how it is calculated
Your RRSP room depends on your income from the previous year, an annual limit and your unused room. Here is how the CRA calculates it.
Updated on October 30, 2026 · 1 min read
The CRA's calculation
In general, your deduction limit for the year is:
- your unused room at the end of the previous year;
- plus the lower of two amounts: 18% of your earned income from the previous year, or the annual limit ($33,810 for 2026);
- minus your pension adjustment, if you belong to a workplace pension plan;
- plus or minus a few rarer adjustments described by the CRA.
Earned income
It mainly includes salary and net self-employment income. Investment income, such as interest and dividends, is not part of it. The full list is in the CRA's RRSP guide.
Deadline
Contributions made until March 1, 2027 can be deducted for 2026. You can also keep a deduction for a future year.
Where to find the official figure
Your deduction limit is on your latest notice of assessment (RRSP Deduction Limit Statement) and in CRA My Account. The CRA may also send you form T1028 if your limit has changed.
Excess contributions
Beyond a small allowed margin, contributions above your deduction limit are taxed every month. The exact amounts are on the CRA page listed below.
Related guides
Official sources
Educational estimate — not advice.