RRSP deduction limit: the 18% formula and the annual dollar cap
New RRSP room is based on 18% of prior-year earned income, up to an annual dollar cap. Unused room and pension adjustments affect the deduction limit.
On this page
- 2026 RRSP annual dollar cap
- $33,810 for 2026.CRA, RRSP and registered-plan limits
- New room and adjustments
- New room uses the lesser of 18% of previous-year earned income and the annual dollar cap. Unused room and pension adjustments affect the deduction limit.CRA, RRSP deduction limit
- Unused room carryforward
- Unused RRSP deduction room carries forward indefinitely and is added to the next year's deduction limit.CRA, RRSP deduction limit
- Maximum age to contribute
- Until December 31 of the year the holder turns 71.CRA, Who can contribute to an RRSP
The deduction limit is 18% of earned income, capped at the annual dollar maximum
New RRSP room uses the lesser of 18% of the previous calendar year's earned income and the annual dollar limit. Unused deduction room carries forward, and pension adjustments can change the deduction limit; the CRA formula also includes pension adjustment reversals and past service pension adjustments. CRA, How your RRSP deduction limit is determined (opens in a new tab).
For 2026 the annual RRSP dollar cap is $33,810. CRA, RRSP and registered-plan limits (opens in a new tab).
Worked examples using the money.financial calculator, with no unused room or pension adjustment: a person with $150,000 of earned income in 2025 has new RRSP deduction room of $27,000 for 2026. A person with $200,000 of earned income in 2025 has new room of $33,810 for 2026, limited by the annual dollar cap.
Unused deduction room from a prior year carries forward automatically and is added to the new room calculated for the next year. There is no expiry for unused RRSP deduction room. CRA, RRSP deduction limit carryforward (opens in a new tab)
What this page covers
This page is an original explanation of CRA material and does not imply CRA endorsement. This page does not cover the Home Buyers' Plan, the Lifelong Learning Plan, group RRSPs, PRPPs, or SPPs, which each have their own rules.