RRSP Withdrawal Tax Calculator — Ontario 2026
Calculate the withholding tax deducted at source and the actual Ontario income tax on your RRSP withdrawal. See whether you'll get a refund or owe more when you file.
Your Information
Employment, CPP, OAS, pension, etc.
The amount you plan to withdraw
Expected refund at tax filing: $193
CRA withholds 30.00% upfront, but your actual marginal rate on this withdrawal is 29.65%. You'll likely receive a $193 refund when you file.
Withholding Tax
$6,000
30.00% withheld by CRA
Actual Tax
$5,807
29.65% marginal rate
Net After Withholding
$14,000
deposited to your account
Net After Actual Tax
$14,193
true after-tax value
Tax Breakdown
| RRSP withdrawal | $20,000 |
| CRA withholding rate | 30.00% |
| Withholding tax (deducted at source) | −$6,000 |
| Net proceeds (after withholding) | $14,000 |
| Other income (employment, CPP, etc.) | $60,000 |
| Marginal rate on withdrawal (29.65%) | $5,807 |
| Net proceeds (after actual tax) | $14,193 |
| Expected refund at filing | $193 |
RRSP Withdrawal Tax in Ontario
Ontario residents face the same federal withholding rates as most Canadians — 10% on amounts up to $5,000, 20% on $5,001–$15,000, and 30% on amounts over $15,000. At filing, the withdrawal is added to your other income and taxed at your combined federal and Ontario provincial marginal rate. Ontario's provincial brackets range from 5.05% to 13.16%, but a provincial surtax (20% on Ontario tax above $5,659, plus 36% on Ontario tax above $7,243) effectively pushes the marginal rate higher for earners above roughly $90,000 of income.
For a typical Ontario resident with $60,000 of other income withdrawing $20,000 (total $80,000), the combined federal and Ontario marginal rate — including the surtax effect — is approximately 33–38%. The standard 30% CRA withholding on a $20,000+ withdrawal is below this rate, meaning most Ontario residents in this income range will owe a modest balance when they file. Requesting additional withholding (e.g., an extra 5–8%) from your financial institution can prevent a surprise in April.
Ontario residents also pay the Ontario Health Premium (up to $900 per year based on income), which is assessed separately from income tax but affects your overall Ontario tax burden. When planning RRSP withdrawals, including the OHP in your total tax estimate ensures you're accounting for the full Ontario cost of the withdrawal, not just the income tax component.
Frequently Asked Questions
What is the RRSP withholding rate for Ontario residents in 2026?
The withholding rates are set federally and apply equally to Ontario residents: 10% on amounts up to $5,000; 20% on amounts from $5,001 to $15,000; and 30% on amounts over $15,000. This is deducted at source by your financial institution and remitted to CRA. It is a prepayment, not the final tax.
How does Ontario's surtax affect the tax on my RRSP withdrawal?
Ontario applies a surtax of 20% on provincial income tax exceeding $5,659, and an additional 36% on provincial tax exceeding $7,243. For RRSP withdrawals that push your provincial tax above these thresholds, your effective marginal rate is higher than the bracket rate alone. At $80,000 of total income, the combined federal and Ontario marginal rate (including surtax) is typically 33–38%. The standard 30% CRA withholding may be below your actual marginal rate, meaning you'll likely owe a balance at filing.
Should I request additional withholding on my RRSP withdrawal in Ontario?
If your combined federal and Ontario marginal rate exceeds 30% — which is common for Ontario residents earning $60,000 or more — the standard 30% withholding on large withdrawals may not fully cover your tax. You can request additional withholding from your financial institution to avoid a balance owing in April. Alternatively, Ontario residents can make quarterly instalment payments to CRA if they expect to owe more than $3,000 at filing.
Looking for a different province? Use the main RRSP Withdrawal Tax Calculator to switch between all provinces and territories.
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