RRSP Deadline 2026: 4 Days Left To Lower Your Tax Bill

Last Updated On 26 February 2026, 9:08 AM EST (Toronto Time)

The RRSP deadline for the 2025 tax year, set for Monday, March 2, 2026, is rapidly approaching for Canadians seeking to lower their 2025 tax bill.

This means you have just four days left to make a contribution that counts toward last year’s taxes.

Every dollar you contribute to your Registered Retirement Savings Plan before the deadline reduces your taxable income for 2025.

If you’re in a 30% tax bracket and contribute $10,000, you could see roughly $3,000 back on your tax refund. That’s money the government would otherwise keep.

The deadline normally falls on March 1, but because that date lands on a Sunday this year, the Canada Revenue Agency has extended it to the next business day.

This gives procrastinators one extra day, but waiting until the last minute is risky.

Bank transfers can take 24 to 48 hours to process, and any contribution that doesn’t clear by midnight on March 2 will count toward your 2026 taxes instead.

Here’s everything you need to know about the 2026 RRSP deadline, including contribution limits, how to check your available room, and what happens if you miss the cutoff.

RRSP Contribution Limit For 2025

For the 2025 tax year, the maximum RRSP contribution limit is $32,490.

However, your personal limit may be different depending on your income and whether you have unused contribution room from previous years.

The CRA calculates your RRSP deduction limit as 18% of your earned income from the previous year, up to the annual maximum.

If you earned $100,000 in 2024, your contribution room for 2025 would be $18,000. If you earned $200,000, your room would be capped at $32,490.

The good news is that unused RRSP contribution room carries forward indefinitely.

If you didn’t maximize your contributions in previous years, that unused room accumulates and adds to your current year’s limit.

Some Canadians have tens of thousands of dollars in unused RRSP room without realizing it.

Your exact RRSP deduction limit for 2025 is listed on your most recent Notice of Assessment from the CRA.

You can also find it by logging into your CRA My Account online.

This number already accounts for any pension adjustments from employer pension plans and includes your accumulated unused room from prior years.

How To Check Your RRSP Contribution Room

Before making a contribution, you need to know exactly how much room you have.

Contributing more than your limit triggers a penalty tax of 1% per month on the excess amount, so accuracy matters.

The easiest way to check your RRSP contribution room is through CRA My Account.

This number updates automatically after the CRA processes your tax return each year.

If you don’t have access to CRA My Account, check your most recent Notice of Assessment.

This document is mailed to you after the CRA processes your tax return and includes your RRSP deduction limit for the following year.

Look for the line that says “RRSP Deduction Limit” or “Available Contribution Room.”

You can also call the CRA’s Tax Information Phone Service at 1-800-267-6999 to get your RRSP information over the phone.

You’ll need your Social Insurance Number and some personal information to verify your identity.

Keep in mind that if you’ve already made RRSP contributions earlier in 2025 or during the first 60 days of 2026, those amounts reduce your available room.

The CRA My Account balance may not reflect very recent contributions, so keep your own records of what you’ve contributed this year.

What Happens If You Over-Contribute

The CRA allows a lifetime over-contribution buffer of $2,000. This means you can exceed your RRSP limit by up to $2,000 without penalty.

However, you won’t get a tax deduction for that excess amount until you have enough contribution room in a future year.

If you go even one dollar over the $2,000 buffer, the CRA charges a penalty tax of 1% per month on the excess amount.

This penalty continues every month until you either withdraw the excess or gain enough new contribution room to absorb it.

For example, if you over-contribute by $5,000 beyond your limit, you’re $3,000 over the buffer.

The penalty would be $30 per month ($3,000 x 1%) until you fix the problem.

Over a year, that adds up to $360 in penalties for a relatively small mistake.

If you realize you’ve over-contributed, you have options. You can withdraw the excess amount, though the withdrawal will be taxed as income and your contribution room won’t be restored.

Alternatively, you can wait until you gain new contribution room in the following year, but you’ll continue paying the 1% monthly penalty until the excess is absorbed.

To report an over-contribution and pay the penalty, you need to file Form T1-OVP with the CRA.

This form calculates the penalty tax owing and must be filed within 90 days after the end of the year in which the over-contribution occurred.

RRSP vs TFSA: Which Should You Prioritize

Both RRSPs and TFSAs offer tax-sheltered growth, but they work differently.

Understanding the difference helps you decide where to put your money before the deadline.

RRSP contributions reduce your taxable income in the year you make them. You get an immediate tax break, and your investments grow tax-free inside the account.

However, when you withdraw money in retirement, those withdrawals are taxed as income.

The strategy assumes you’ll be in a lower tax bracket when you retire than when you contributed.

TFSA contributions don’t reduce your taxable income. You contribute with after-tax dollars, meaning you’ve already paid tax on that money.

The benefit is that your investments grow tax-free, and withdrawals are completely tax-free in retirement. There’s no tax hit when you take the money out.

Generally, RRSPs make more sense if you’re in a high tax bracket now and expect to be in a lower bracket in retirement.

The immediate tax deduction is worth more to someone paying 40% marginal tax than someone paying 20%.

TFSAs tend to benefit those in lower tax brackets or those who want flexibility to withdraw without tax consequences.

One important difference: the RRSP deadline is March 2, 2026, but TFSA contributions have no annual deadline.

You can contribute to your TFSA anytime during the calendar year.

If you’re trying to decide between the two and need more time to think, you can always contribute to a TFSA now and transfer to an RRSP later (though this doesn’t help with the 2025 tax year).

First Home Savings Account Alternative

If you’re saving to buy your first home, the First Home Savings Account offers the best of both worlds: RRSP-style tax deductions when you contribute, and TFSA-style tax-free withdrawals when you buy a home.

The FHSA contribution limit is $8,000 per year, with a lifetime maximum of $40,000.

Unlike RRSPs, unused FHSA room only carries forward if you’ve opened an account, and the maximum carry-forward is $8,000 (one year’s worth).

Here’s the catch: FHSA contributions must be made by December 31 to count for that tax year.

There’s no “first 60 days” grace period like with RRSPs. If you wanted an FHSA deduction for 2025, the deadline was December 31, 2025.

Any contributions you make now will count toward 2026.

For the March 2 deadline, your only option for a 2025 tax deduction is the RRSP.

But if you’re planning ahead for 2026, opening an FHSA now could give you access to both types of accounts for future tax planning.

Spousal RRSP Contributions

A spousal RRSP allows the higher-earning partner to contribute to their spouse’s RRSP while claiming the tax deduction themselves.

This is a powerful income-splitting tool for couples where one partner earns significantly more than the other.

When you contribute to a spousal RRSP, the contribution uses your RRSP room and you get the tax deduction.

But the money belongs to your spouse, and when they withdraw it in retirement, the withdrawal is taxed at their (presumably lower) tax rate.

There’s a three-year attribution rule to watch out for. If your spouse withdraws money from the spousal RRSP within three years of your last contribution, the withdrawal is attributed back to you and taxed at your rate.

This prevents couples from using spousal RRSPs for short-term income splitting.

The March 2, 2026 deadline applies to spousal RRSP contributions as well. If you want to contribute to your spouse’s RRSP and claim the deduction on your 2025 tax return, the contribution must be made by the deadline.

Using Your RRSP For A Home Purchase

The Home Buyers’ Plan allows first-time home buyers to withdraw up to $60,000 from their RRSP tax-free to put toward a down payment.

If you’re buying with a spouse or partner who also qualifies, you can each withdraw $60,000 for a combined total of $120,000.

To use the Home Buyers’ Plan, the funds must have been in your RRSP for at least 90 days before you withdraw them.

This means if you contribute now with plans to use the HBP, you’ll need to wait until early June 2026 at the earliest before those specific funds are eligible for withdrawal.

The withdrawal is tax-free, but it’s not free money. You’re required to repay the amount back into your RRSP over 15 years, starting the second year after your withdrawal.

The minimum annual repayment is 1/15 of the total amount. If you don’t make the minimum repayment in any year, that amount is added to your taxable income.

For example, if you withdraw $60,000 under the HBP, you’ll need to repay at least $4,000 per year for 15 years.

If you only repay $2,000 one year, the $2,000 shortfall gets added to your income and taxed.

What Happens If You Miss The Deadline

If you miss the March 2, 2026 deadline, your contribution room doesn’t disappear. It simply carries forward to the next year.

You can still make RRSP contributions after the deadline, but those contributions will count toward your 2026 taxes instead of 2025.

The main consequence of missing the deadline is timing. You lose the opportunity to reduce your 2025 tax bill, which means you’ll either owe more tax or receive a smaller refund when you file your 2025 return.

If you were counting on that RRSP deduction to offset income, you’ll need to adjust your expectations.

Some Canadians deliberately skip the RRSP deadline in lower-income years. If your income was unusually low in 2025, you might be in a lower tax bracket than usual.

In that case, the RRSP deduction is worth less, and you might choose to save your contribution room for a higher-income year when the deduction will save you more tax.

Remember that you can contribute to your RRSP and choose not to claim the deduction immediately.

You can carry forward the deduction to a future year when you’re in a higher tax bracket. However, most people prefer to take the deduction right away.

How To Make A Last-Minute RRSP Contribution

If you’re contributing in the final days before the deadline, timing is critical. Different methods have different processing times, and a contribution that doesn’t clear by March 2 won’t count for 2025.

Online transfers from your bank account to your RRSP are usually the fastest option.

Most major banks can process internal transfers on the same business day if you initiate them early enough.

However, transfers between different financial institutions can take one to three business days.

If you’re transferring a large amount or moving money from a non-registered investment account, the process may take longer.

Selling investments, settling the trades, and transferring cash can add several days to the timeline.

For absolute certainty, visit your bank or financial institution in person before the deadline.

A direct deposit or certified cheque can often be processed immediately. Some institutions also allow you to make contributions over the phone if you already have an RRSP set up with them.

Keep your receipt. Your financial institution will issue an RRSP contribution receipt that you’ll need when filing your taxes.

This receipt confirms the date and amount of your contribution and is your proof that the contribution was made before the deadline.

Don’t Forget Employer RRSP Matching

If your employer offers RRSP matching, this is essentially free money that you should maximize before contributing to a personal RRSP.

Employer matching typically works by your employer contributing a percentage of your salary to your RRSP when you contribute a matching amount.

For example, if your employer matches 50% of your contributions up to 6% of your salary, and you earn $80,000, contributing $4,800 (6% of salary) would get you an additional $2,400 from your employer.

That’s a 50% return on your money before any investment growth.

Employer contributions are usually made through payroll deductions, so they happen automatically throughout the year.

Check with your HR department to see if you’ve maximized your employer match for 2025.

If not, you may be able to increase your contributions for the remaining pay periods before the deadline.

Keep in mind that employer contributions count toward your RRSP deduction limit.

Your Notice of Assessment includes a “pension adjustment” that accounts for employer pension contributions, reducing your available RRSP room.

Make sure you’re not accidentally over-contributing by forgetting to account for employer contributions.

How To Succeed With Your RRSP Contribution

Making a last-minute RRSP contribution is just the first step. To truly succeed with retirement savings, you need a strategy that goes beyond the annual deadline scramble.

Set up automatic monthly contributions to your RRSP throughout the year.

Even small amounts add up over time, and you’ll avoid the stress of finding a large lump sum every February.

Contributing $500 per month is easier than finding $6,000 at the end of the year.

Ask your employer to reduce your tax withholdings if you’re making regular RRSP contributions.

The CRA allows this if you can demonstrate you’ll be claiming RRSP deductions. Instead of waiting for a tax refund, you’ll have more money in each paycheque throughout the year.

Review your RRSP investments at least once a year. Contributing money is important, but how that money is invested determines your long-term returns.

Make sure your asset allocation matches your risk tolerance and time horizon.

Consider working with a financial advisor if you have complex tax situations or significant assets.

The cost of professional advice often pays for itself through better tax planning and investment decisions.

The March 2, 2026 RRSP deadline is just four days away. Whether you contribute $100 or $32,490, every dollar reduces your 2025 tax bill and grows tax-sheltered until retirement.

Check your contribution room today, decide how much you can afford, and make your contribution before the deadline passes. Your future self will thank you.

Frequently Asked Questions (FAQs)

Can I contribute to my RRSP if I don’t have employment income?

You can contribute if you have available room from previous years, even without current employment income. RRSP room is based on earned income from prior years, and unused room carries forward. However, you won’t accumulate new contribution room without earned income, which includes employment income, self-employment income, rental income, and certain other sources. Investment income, pension income, and government benefits don’t count as earned income for RRSP purposes.

What happens to my RRSP if I leave Canada permanently?

Your RRSP remains intact and continues to grow tax-sheltered even after you become a non-resident. However, when you eventually withdraw funds, Canada will withhold tax at rates of 25% for most countries (or lower if a tax treaty applies). You cannot make new contributions after becoming a non-resident. Some countries may also tax your RRSP withdrawals, potentially creating double taxation situations that tax treaties may or may not resolve.

Can creditors access my RRSP if I declare bankruptcy?

RRSPs have significant creditor protection in bankruptcy, but with an important exception. Contributions made in the 12 months before bankruptcy can be seized by creditors. Any contributions made more than 12 months before bankruptcy are generally protected. If you’re facing financial difficulties, avoid making large last-minute RRSP contributions as a way to shelter assets, as this can be reversed by a bankruptcy trustee.

Can I use my RRSP as collateral for a loan?

Generally, no, if you use your RRSP as security for a loan, the entire RRSP becomes deregistered and the full value is added to your taxable income for that year. This would trigger a massive tax bill and defeat the purpose of the RRSP. Some financial institutions offer RRSP loans where they lend you money to contribute to an RRSP, but the RRSP itself cannot be pledged as collateral without losing its tax-sheltered status.

What happens if I die with money in my RRSP?

If you name your spouse or common-law partner as beneficiary, the RRSP can be transferred to their RRSP or RRIF tax-free. If you name a financially dependent child or grandchild, special rollover rules may apply. For all other beneficiaries, the entire RRSP value is included in your final tax return as income, potentially pushing your estate into the highest tax bracket. This can result in a significant portion of your RRSP going to taxes rather than your heirs.

Satinder Bains

Satinder brings expertise, knowledge, and experience related to internal work flows at IRCC. She worked at Canadian Consulate in Chandigarh before moving to Canada. Her articles on “Chinook – An internal IRCC tool used to bulk process temporary applications” was one of the notable work on our news website