RRSP limit 2027 in Canada: $35,390 and how your room works
The dollar limit is a ceiling, not an entitlement. Most people never reach it, because 18% of their income is lower, a workplace pension uses up part of it, or earlier contributions have already used the room. What matters is your personal deduction limit, which the CRA calculates for you each year. Below is how the formula works, where to find your number, and a calculator that applies it to your income.
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RRSP room calculator
What is your RRSP deduction limit for the year?
A simplified version of the CRA formula. It ignores pension adjustment reversals, past service pension adjustments, and contributions you have already made. Your RRSP Deduction Limit Statement is the number that counts.
The dollar limits by year
| Year | RRSP dollar limit | Based on earned income in |
|---|---|---|
| 2024 | $31,560 | 2023 |
| 2025 | $32,490 | 2024 |
| 2026 | $33,810 | 2025 |
| 2027 | $35,390 | 2026 |
These are from the CRA's table of RRSP, pension and TFSA limits. The 2027 figure is listed there, but it is a limit, not your room; the room you can use in 2027 depends on your 2026 earned income. For the TFSA side, see the TFSA limit.
How your limit is calculated
- Start with 18% of your earned income from the previous year, or the annual dollar limit, whichever is lower.
- Subtract your pension adjustment (PA), the value of pension benefits you earned at work.
- Add a pension adjustment reversal if you have one, and subtract any net past service pension adjustment.
- Add your unused room from the end of the preceding year, and your unused contributions from earlier years can be deducted too.
Not all income counts as earned income. Our guide to what counts as earned income goes through the detail, and side hustle income usually counts once it is net business income.
The 18% rule has a cap. Using the CRA's dollar limits, 18% of income reaches $33,810 at about $187,800 of income (the 2026 limit) and $35,390 at about $196,600 (the 2027 limit). Above those incomes, more earnings add no extra room that year.
Worked example
The table finds the room for the 2027 deduction year from 2026 income. These are illustrative; use your own statement for real numbers.
| Person | 2026 earned income | 18% | Lesser of 18% and $35,390 | Pension adjustment | Unused room | Deduction limit |
|---|---|---|---|---|---|---|
| Sam: $85,000 earned income, no pension | $85,000 | $15,300 | $15,300 | $0 | $4,000 | $19,300 |
| Sam with a $6,000 pension adjustment | $85,000 | $15,300 | $15,300 | $6,000 | $4,000 | $13,300 |
| Alex: $210,000 earned income, no pension | $210,000 | $37,800 | $35,390 | $0 | $0 | $35,390 |
Sam earns $85,000, so 18% is $15,300, well under the cap. Adding $4,000 of unused room gives $19,300. A $6,000 pension adjustment lowers it to $13,300. Alex's 18% would be $37,800, but the dollar limit caps it at $35,390. Contributing the full limit would mean $35,390 of cash, which is far more than most people can invest in a year.
Where to find your deduction limit
- Notice of assessment: the RRSP Deduction Limit Statement on your latest notice of assessment or reassessment. File your return on time to get it.
- CRA My Account: sign in to your CRA account and look for your RRSP deduction limit in the registered plans information. Menu labels change, so use the account's search if needed.
- Phone: the CRA's automated phone services give the same figure.
- Form T1028: the CRA may mail you Your RRSP Information if your limit has changed or you took part in the Home Buyers' Plan or Lifelong Learning Plan.
The figure on your latest assessment is based on income you have already reported, so it is more reliable than a calculator once you have it.
Pension adjustment
If you belong to a workplace pension, your employer reports a pension adjustment on your T4. It is deducted from the 18% amount because the pension already uses part of your tax-assisted saving room. A PA from year X reduces your room for year X plus one, so a 2026 PA shapes your 2027 limit.
Unused room and over-contributions
Room you do not use carries forward and stays available. You do not lose it by skipping a year, and you can deduct a contribution in a later year than you make it. Contributions can be made until December 31 of the year you turn 71.
Do not overshoot. The CRA says that if your contributions exceed your deduction limit by more than $2,000, you owe tax of 1% per month on the excess. If you are comparing accounts before using room, see RRSP vs TFSA, and for contributing to a partner's plan, spousal RRSPs.
Which year does a contribution count for?
Contributions made in the first 60 days of a year can be claimed on the prior year's return, which for the 2026 tax year means up to March 1, 2027. See the 2026 RRSP deadline and the first 60 days guide. For basics on how the account works, start with RRSP explained. Check what your paycheque keeps before deciding how much to set aside with our paycheque deductions guide, and try other calculators on the tools page.
How to check your RRSP room for 2027
- Find your RRSP Deduction Limit Statement on your latest notice of assessment, or sign in to your CRA account.
- Note your unused room and any pension adjustment on your T4.
- Estimate 18% of your 2026 earned income and compare it with the $35,390 dollar limit.
- Subtract your pension adjustment and add unused room carried forward.
- Keep any over-contribution within the $2,000 buffer, or avoid it entirely.
Questions people ask
What is the RRSP limit for 2027?
The CRA lists the RRSP dollar limit as $35,390 for 2027. Your own limit is the lesser of 18% of your previous year's earned income and that dollar limit, minus any pension adjustment, plus unused room carried forward.
What is the RRSP limit for 2026?
$33,810, according to the CRA. For the 2026 tax year your new room is the lesser of 18% of your 2025 earned income and $33,810, less your pension adjustment, plus unused room.
What is the 18% RRSP rule?
Each year you earn new RRSP room equal to 18% of the previous year's earned income, up to the annual dollar limit. You would need roughly $196,600 of 2026 earned income to reach the $35,390 cap for 2027.
Where do I find my RRSP deduction limit?
On the RRSP Deduction Limit Statement of your latest notice of assessment or reassessment, in your CRA account, or through the CRA's automated phone service. The CRA may also mail you Form T1028 if your limit has changed.
What is a pension adjustment and how does it affect my RRSP room?
If you belong to a registered pension plan or deferred profit sharing plan, your employer reports a pension adjustment (PA) for the year. It is subtracted from the 18% amount, which reduces the room you earn for the following year.
Does unused RRSP room carry forward?
Yes. Unused deduction room from the end of the preceding year is added to your limit, so room you did not use in earlier years stays available.
What happens if I contribute more than my limit?
The CRA says that if your contributions exceed your deduction limit by more than $2,000, you owe tax of 1% per month on the excess. Check your limit before contributing.
What is the deadline to contribute for the 2026 tax year?
Contributions made in the first 60 days of 2027 can be deducted on your 2026 return. Counting 60 days from January 1, 2027 gives March 1, 2027, as covered in our deadline guide.
Looni reads your statements and flags fees, subscriptions and interest charges, so more of your paycheque reaches your savings. Read-only, no advice.
Sources
Canada Revenue Agency, MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE (RRSP dollar limits of $32,490 for 2025, $33,810 for 2026 and $35,390 for 2027), How contributions affect your RRSP deduction limit (18% rule, pension adjustment, unused room, $2,000 buffer and 1% monthly tax, age 71) and Where to find your RRSP deduction limit (notice of assessment, CRA account, phone, Form T1028). The Sam and Alex examples and income thresholds are our arithmetic.