The Canada Revenue Agency has officially raised the registered retirement savings plan dollar limit to $36,390 for 2028 and confirmed $35,390 for 2027, up from $33,810 for the current 2026 tax year.
The CRA published these updated figures on its registered plans administration page on October 28, 2026, alongside new money purchase pension plan limits, defined benefit limits, and the year’s maximum pensionable earnings thresholds.
The 2028 RRSP dollar limit represents a $2,580 cumulative increase over the 2026 ceiling of $33,810, giving Canadians significantly more room to shelter earned income from taxation in the years ahead.
This article covers the exact new limits, how the CRA calculates contribution room, income thresholds required to reach the maximum, key deadlines, and what every Canadian taxpayer should verify before contributing.
Table of Contents
New RRSP Dollar Limits For 2027 And 2028
The CRA’s October 28, 2026 announcement set the 2027 money purchase limit at $36,390, which under the Income Tax Act automatically becomes the 2028 RRSP dollar limit.
The 2027 RRSP dollar limit of $35,390 was previously announced on October 30, 2025, when the CRA set the 2026 money purchase limit at that same figure.
Alongside the new limits for registered plans, the CRA confirmed that the 2027 year’s maximum pensionable earnings will be $76,700 and the year’s additional maximum pensionable earnings will be $87,400.
| Tax Year | RRSP Dollar Limit | Annual Increase ($) | Annual Increase (%) |
| 2026 | $33,810 | $1,320 | 4.06% |
| 2027 | $35,390 | $1,580 | 4.67% |
| 2028 | $36,390 | $1,000 | 2.83% |
The 2027 increase of $1,580 is the largest annual dollar increase among the three years shown, followed by a smaller $1,000 increase for 2028.
Both changes reflect the annual adjustment of registered retirement savings limits under federal tax rules.
How The Money Purchase Limit Sets The RRSP Ceiling
The Income Tax Act ties each year’s RRSP dollar limit to the money purchase registered pension plan limit from the prior year.
The 2026 money purchase limit of $35,390 became the 2027 RRSP limit of $35,390.
The newly announced 2027 money purchase limit of $36,390 now sets the 2028 RRSP limit at $36,390.
This one-year lag is why the CRA can confirm the RRSP dollar limit a full year before the tax year it applies to.
The CRA also announced that the 2027 defined benefit limit will be $4,043.33 per year of service and the 2027 deferred profit sharing plan limit will be $18,195.
How RRSP Contribution Room Is Calculated
The RRSP dollar limit is a national ceiling, but the amount any individual Canadian can contribute depends on a personal calculation the CRA performs each year.
The CRA determines your annual RRSP deduction limit using the following formula.
RRSP Deduction Limit = the lesser of 18% of your prior year’s earned income or the annual RRSP dollar limit, minus any pension adjustment reported by your employer, plus any unused contribution room carried forward from previous years.
Earned income for RRSP purposes includes employment income, net self-employment income, rental income, disability pension payments from the Canada Pension Plan, and certain other amounts reported on your annual tax return.
Investment income, capital gains, employment insurance benefits, and Old Age Security payments do not count as earned income for RRSP room calculations.
A pension adjustment is the value of benefits your employer’s registered pension plan or deferred profit sharing plan accrued for you during the previous year.
This adjustment reduces your RRSP room because workplace pension contributions already provide tax-sheltered retirement savings on your behalf.
Unused RRSP contribution room from any previous year carries forward indefinitely and accumulates until you use it.
Annual RRSP Dollar Limit Versus Your Individual Contribution Room
A critical distinction that many Canadians overlook is the difference between the RRSP dollar limit and their personal contribution room.
The dollar limit is the maximum amount of new room the CRA can add to any individual’s deduction limit in a given year.
Your personal RRSP contribution room may be substantially higher than the dollar limit if you have accumulated unused room over multiple years.
Your personal contribution room could also be lower than the dollar limit if your prior year’s earned income was below the threshold required to generate the full amount.
The only reliable source for your exact contribution room is your most recent Notice of Assessment from the CRA or the RRSP and TFSA section in CRA My Account.
Income Required To Reach The Maximum RRSP Limit
Because the RRSP formula uses 18% of prior-year earned income, reaching the full dollar limit requires a specific income threshold.
| RRSP Dollar Limit Year | Required Earned Income (Prior Year) | Calculation |
| 2027 ($35,390) | $196,612 in 2026 | $35,390 ÷ 0.18 = $196,611.11 |
| 2028 ($36,390) | $202,167 in 2027 | $36,390 ÷ 0.18 = $202,166.67 |
Canadians generally need at least $196,612 in eligible earned income during 2026 to generate the full $35,390 in new RRSP room for 2027, before pension adjustments.
Similarly, at least $202,167 in earned income during 2027 is needed to generate the full $36,390 in new room for 2028.
This is why federal tax brackets and earned income levels are directly relevant to retirement planning.
Practical Calculation Examples For Different Income Levels
Example 1: Employee earning $65,000 in 2026
New RRSP room for 2027 = 18% of $65,000 = $11,700.
This is below the $35,390 dollar limit, so the $11,700 figure applies.
If this taxpayer has $4,000 in unused room carried forward, their total 2027 deduction limit becomes $15,700.
Example 2: Employee earning $120,000 in 2026 with a $6,500 pension adjustment
18% of $120,000 = $21,600, which is below the $35,390 dollar limit.
After subtracting the $6,500 pension adjustment, new room = $15,100.
Unused carry-forward room of $8,000 brings the total deduction limit to $23,100.
Example 3: Self-employed professional earning $210,000 in 2026
18% of $210,000 = $37,800, which exceeds the $35,390 dollar limit.
The dollar limit caps new room at $35,390 for 2027.
With no pension adjustment and $12,000 in unused room, the total deduction limit is $47,390.
These examples illustrate why relying on the published CRA dollar limit alone can lead to overcontributions or missed opportunities.
RRSP Contribution Deadlines For 2026 And 2027 Tax Years
The CRA allows contributions made within the first 60 days of a calendar year to count toward the prior tax year’s return.
| Tax Year | Contribution Deadline | Notes |
| 2026 | March 1, 2027 | 60 days after December 31, 2026 |
| 2027 | February 29, 2028 | 60 days after December 31, 2027 (2028 is a leap year) |
Contributions made between January 1 and March 1, 2027 can be deducted on either your 2026 or 2027 tax return, whichever produces a larger tax savings.
Contributions made after March 1, 2027 cannot be claimed as deductions for the 2026 tax year.
They may be deducted for 2027, subject to available contribution room, or carried forward for deduction in a future year.
Contributions made after the 2027 deadline of February 29, 2028 will count toward the 2028 tax year.
Filing your tax return on time is equally important because CRA benefit payments such as the Canada Child Benefit, Canada Workers Benefit, and provincial credits are calculated using your assessed tax return data.
RRSP Tax Deductions, Tax-Deferred Growth, And Withdrawals
Every dollar contributed to an RRSP reduces your taxable income for the year you claim the deduction.
A taxpayer in the 29% federal bracket who contributes $10,000 saves $2,900 in federal tax alone, plus additional provincial tax savings depending on their province.
Combined federal and provincial marginal income tax rates in Ontario can reach 53.53% on taxable income exceeding $258,482 under the 2026 tax brackets, making RRSP deductions especially valuable for high-income earners.
Inside the RRSP, all investment growth is tax-deferred.
Interest, dividends, and capital gains compound without any annual tax drag until funds are withdrawn.
When you withdraw from your RRSP, the full amount is added to your taxable income for that year and taxed at your marginal rate.
Financial institutions withhold tax at the point of withdrawal: 10% on amounts up to $5,000, 20% on amounts between $5,001 and $15,000, and 30% on amounts exceeding $15,000.
Quebec residents face different withholding rates due to additional provincial withholding requirements.
Two exceptions allow tax-free RRSP withdrawals under specific conditions: the Home Buyers’ Plan, which permits up to $60,000 for a qualifying first home purchase, and the Lifelong Learning Plan, which allows up to $20,000 for full-time education.
By December 31 of the year you turn 71, you must convert your RRSP to a registered retirement income fund, purchase an annuity, or withdraw the full balance.
Potential Tax Savings At Different Contribution Levels
The tax benefit of an RRSP contribution depends on your marginal tax rate at the time of the deduction.
| RRSP Contribution | Assumed Marginal Tax Rate | Illustrative Tax Savings |
| $5,000 | 20% | $1,000 |
| $10,000 | 30% | $3,000 |
| $20,000 | 40% | $8,000 |
| $35,390 (2027 max) | 45% | $15,925.50 |
| $36,390 (2028 max) | 45% | $16,375.50 |
These calculations illustrate potential tax savings at assumed marginal rates rather than actual 2027 or 2028 tax liabilities.
Actual savings depend on federal and provincial tax brackets, other deductions and credits, and whether the RRSP deduction crosses multiple tax brackets.
A taxpayer does not need to claim the deduction in the same year they contribute.
Strategically deferring the deduction to a year when you expect to be in a higher tax bracket can increase the eventual tax savings.
RRSP Overcontribution Rules And Penalties
The Income Tax Act provides a $2,000 lifetime overcontribution buffer for individuals who are 18 years of age or older.
This buffer allows minor calculation errors without triggering penalties, but it does not generate any additional tax deduction.
Overcontributions exceeding the $2,000 buffer are subject to a penalty tax of 1% per month on the excess amount.
This penalty applies for each month the excess amount remains in the RRSP.
A taxpayer who overcontributes by $5,000 beyond the buffer would face a $50 monthly penalty until the excess is withdrawn.
Overcontributions must be reported to the CRA using Form T1-OVP, Individual Tax Return for RRSP, PRPP, and SPP Excess Contributions.
Withdrawing an excess contribution can help stop further penalties.
Although the withdrawal is generally included in income, an offsetting deduction may be available for qualifying withdrawals of unused contributions, and CRA procedures may allow eligible withdrawals without withholding tax.
In certain circumstances, the CRA may waive the penalty if you can demonstrate that the overcontribution resulted from a reasonable error and you withdrew the excess without unreasonable delay.
How Canadians Can Check Their RRSP Contribution Room
The CRA provides two primary methods for verifying your exact RRSP contribution room.
CRA My Account: Log in to CRA My Account and navigate to the RRSP and TFSA section.
Your current deduction limit, unused contributions, and available room are displayed and updated after each tax return is assessed.
Notice of Assessment: Every year after the CRA processes your tax return, you receive a Notice of Assessment that includes your RRSP deduction limit for the following year.
You can also call the CRA’s Tax Information Phone Service at 1-800-267-6999 for automated access to your RRSP information.
Checking your latest CRA assessment before contributing is essential because it reflects assessed RRSP deduction limits, pension adjustments, and unused room from previous years.
However, CRA My Account may not reflect contributions made since your last assessment, so you should also review your own contribution records to avoid exceeding your available room.
Taxpayers who changed employers, received a pension adjustment reversal, or made a Home Buyers’ Plan repayment during the year should verify their room before making year-end contributions.
What The 2028 RRSP Limit Means For Retirement Planning
The progressive annual increases in the RRSP dollar limit mean that Canadians who maximize contributions each year are building retirement savings at a faster rate than in previous decades.
A taxpayer who contributes the full dollar limit every year from 2026 through 2028 would shelter $105,590 in earned income from tax across those three years alone.
| Year | Maximum Contribution | Cumulative Three-Year Total |
| 2026 | $33,810 | $33,810 |
| 2027 | $35,390 | $69,200 |
| 2028 | $36,390 | $105,590 |
Combined with the tax-deferred compounding inside the account, these contributions can generate significant long-term wealth.
Canadians receiving Canada Pension Plan payments in retirement will find that personal RRSP savings serve as a critical supplement, especially since the average CPP retirement benefit is substantially below the maximum.
Newcomers to Canada generally begin building RRSP contribution room through eligible earned income reported for Canadian tax purposes.
Qualifying income is not necessarily limited to income earned physically in Canada, and filing a tax return allows the CRA to assess and report the available room.
There is no retroactive room for years before a taxpayer becomes a Canadian resident for tax purposes.
Additional CRA Registered Plan Limits Announced
| Limit | 2026 | 2027 |
| Money Purchase (MP) Limit | $35,390 | $36,390 |
| Defined Benefit (DB) Limit | $3,932.22 | $4,043.33 |
| RRSP Dollar Limit | $33,810 (2026) / $35,390 (2027) | $35,390 (2027) / $36,390 (2028) |
| DPSP Limit | $17,695 | $18,195 |
| YMPE | $74,600 | $76,700 |
| YAMPE | $85,000 | $87,400 |
These limits affect not only RRSP contributors but also members of employer-sponsored pension plans, deferred profit sharing plans, and Canada Pension Plan contributors.
The increase in the YMPE to $76,700 raises the earnings ceiling for CPP contributions in 2027, increasing the maximum contributions payable by employees and employers.
Higher pensionable earnings can also contribute to larger future CPP retirement benefits, depending on an individual’s contribution history.
Frequently Asked Questions (FAQs)
Can I contribute more than $36,390 to my RRSP in 2028?
Yes, if you have unused contribution room carried forward from previous years, your total deduction limit may be well above the $36,390 dollar limit. The dollar limit only caps the new room the CRA adds each year. Your total available contribution room is the cumulative figure shown on your Notice of Assessment or CRA My Account, and there is no cap on that accumulated total.
If I did not contribute to my RRSP for several years, is that room lost?
No, unused RRSP contribution room carries forward indefinitely under Canadian tax law. A taxpayer who has never contributed but has been earning income and filing returns for 10 years could have well over $100,000 in accumulated room. The CRA tracks this automatically and your full carry-forward balance appears on your most recent Notice of Assessment.
Does the 2028 RRSP limit of $36,390 apply to spousal RRSPs as well?
The $36,390 dollar limit caps the new room added to the contributor’s deduction limit, not the type of RRSP receiving the funds. Contributions to a spousal RRSP are deducted against the contributing spouse’s room, and that spouse’s total deduction limit must have sufficient space to accommodate the contribution. The recipient spouse’s own RRSP deduction limit is not affected by spousal contributions made on their behalf.
What happens if I contribute to my RRSP after the March 1, 2027 deadline for the 2026 tax year?
Any RRSP contribution made after March 1, 2027 cannot be claimed as a deduction on your 2026 return. The contribution may be deducted for 2027 subject to available room, or you can choose to defer the deduction to a future year when your marginal tax rate may be higher.
How long after filing my tax return does the CRA update my RRSP room in My Account?
The CRA generally updates your assessed RRSP deduction limit after processing your income tax return. Your Notice of Assessment confirms the calculated limit, although the information may not reflect contributions made after the latest assessment. Electronic filers who use CRA-certified software generally see faster processing times. If you filed a paper return or your return was selected for review, the update may take longer.
Fact-Checked: All RRSP dollar limits, money purchase limits, contribution formulas, and announcement dates cited in this article were verified against the official CRA Registered Plans Administration page as published on Canada.ca with a page date of October 28, 2026.
Disclaimer: This article is for informational purposes only and does not constitute financial or tax advice. Consult a qualified financial advisor or tax professional before making RRSP contribution decisions. For official program details and your personal deduction limit, visit the CRA’s RRSP information page on Canada.ca.
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