How 2026 RRSP room is estimated
New room = the lesser of 18% of last year’s earned income and the annual dollar limit. For 2026 that limit is $33,810, so you need about $187,833 of 2025 earned income to hit the cap. Add unused room from earlier years. Subtract the pension adjustment (PA) if you have a workplace pension. The CRA prints the official deduction limit on your notice of assessment and in My Account.
Earned income for this purpose usually includes employment and net self-employment, not investment income. Over-contributions above a $2,000 cushion can be taxed at 1% per month. Confirm on Canada.ca RRSP limits before you contribute.
Worked example
If 2025 earned income was $80,000, 18% is $14,400, under the $33,810 cap, so new 2026 room is $14,400 before unused room and pension adjustment. Hitting the $33,810 cap needs about $187,833 of 2025 earned income.
The CRA notice of assessment is the legal limit. Unused room carries forward. A $2,000 over-contribution cushion exists; above that, 1% per month. Deadline for 2026 contributions is 1 March 2027. Confirm on Canada.ca.
Common questions
Where is my real RRSP limit?
On the CRA notice of assessment, or My Account. Use that number if it differs from this estimate.
What counts as earned income?
Usually employment and net self-employment. Not interest, dividends, or most pension income. The CRA definition is in Guide T4040.
When is the 2026 deadline?
Contributions for the 2026 tax year are due on or before 1 March 2027 (60 days after year-end).